Gold is in a holding pattern. There is fantastic support between 1260 and 1270. This has been defended well. On the other hand, price has collapsed from 1360 and has not been sustained above 1300 since. There is a possibility that Gold will be rejected again, preferably at a confluence of the trendline and monthly support/resistance at the 1296 area. Only a daily close above the recent swing high of 1305 area would add a bear-term bullish bias. I anticipate Gold will be rejected again and retest the 1270 area. Should 1260 break on a closing basis, we may see a waterfall decline.
There is too much bullishness on Gold. The threat of a strong Dollar rally is still present, which would absolutely crush the Gold price.
There is too much bullishness on Gold. The threat of a strong Dollar rally is still present, which would absolutely crush the Gold price.