The picture is a bit murky at the start of this week.
Looking at the graph I see,
The gold is struggling to maintain an upward trend. The longer the price travels sideways the more likely it is that the price will fall suddenly but we are in good territory for a strategy for the price to break out either way.
The US indices are getting some support and may be recovering, look for further evidence this afternoon.
The EUR/USD can’t decide.
The GBP/USD is showing support, a nice ABCD pattern and may test previous resistance levels. I like the evidence of the moving averages and like the prospect of 1.58 territory. I can’t see the price ‘breaking through’ to 1.60 but there is that chance. If you knock at the door long enough eventually someone will let you inside.
The gold is good to trade if you are in light positions. The volatility can give you very fine profits.
I have held on to my trade of early August and lifted the S/L a little to protect a little profit. Yesterday there was a drop and recovery and the lifted S/L nearly got hit and that would have been a shame. This is the other hazard of gold, S/L can get triggered with the rushes of blood that this market does have. This phenomena can work in your favour with T/P getting triggered in rush of blood market behavior.
Back from being AWOL.
You have not heard from me lately but I am back with so many announcements that it may take weeks to pass them on.
In the meantime the markets are bubbling along. Gold has been particularly well behaved lately if I do say so but one must always look to the future. Gold is still looking strong and I am sticking to my conservative trade of early August to demonstrate how good profits can be made on fundamental decision making. I have lifted my S/L to the initial entry price to protect against loss but still think that the price will hit $1250.
We have gone back into the same pattern of early 2010 where the EUR/USD falls as the gold rises, contrary to post war history. There are conspiracy theorists out there that say that the gold price is being pulled down by large US institutions who short sell gold when it goes on a run to protect confidence in the US dollar.
This theory seems logical to me seeing what is happening with US stocks and indices set against the background of constant talk of double dips and waterfall falls.