In another relatively quiet day of trading yesterday, gold moved in a $30 range, making a low of 1365 and a high of 1395. Gold has so far failed to move substantially higher following the massive plunge on Friday and Monday - if this were a temporary interruption to the bull trend, we would have expected gold to rebound strongly in a V shaped bounce.
Gold fell sharply overnight, though bounced off 1337 and had since recovered strongly to currently trade around 1387.
It appears that gold is tracing out a triangle consolidation near the lows - if this is the case, then the most likely scenario is for further declines, as the odds favour a downside break of the triangle. A break above 1404 will negate this pattern and suggest more upside and a test of 1450 is more likely.
The recent weakness in oil and equities, as well as other commodities and precious metals is signalling a deflationary environment ahead. This is incredible, considering the huge amounts of economic stimulus pumped into the economy and the historically low interest environment we have been in for the past 4 years.
The suggestion that Europe and the US will follow Japan into a multi-decade deflationary stagnation, after all the efforts to avoid such a scenario, is extremely worrying.
Today's video to subscribers looks at yesterday's trading in detail and
Gold fell sharply overnight, though bounced off 1337 and had since recovered strongly to currently trade around 1387.
It appears that gold is tracing out a triangle consolidation near the lows - if this is the case, then the most likely scenario is for further declines, as the odds favour a downside break of the triangle. A break above 1404 will negate this pattern and suggest more upside and a test of 1450 is more likely.
The recent weakness in oil and equities, as well as other commodities and precious metals is signalling a deflationary environment ahead. This is incredible, considering the huge amounts of economic stimulus pumped into the economy and the historically low interest environment we have been in for the past 4 years.
The suggestion that Europe and the US will follow Japan into a multi-decade deflationary stagnation, after all the efforts to avoid such a scenario, is extremely worrying.
Today's video to subscribers looks at yesterday's trading in detail and
