With the U.S. Dollar Index trading near 98 and gold under continued pressure, today King World News is pleased to share a fascinating piece which features a key illustration about what is really happening with the price of gold.
By Louise Yamada, Founder of Louise Yamada Technical Research Advisors
November 4 (King World News) – METALS – Gold: Still Disappoints the Bulls
Gold Spot price (GOLDS-1,142.16, see Figure 33) rallied once again into the 200-day MA and toward the first major resistance at 1,200 through which price fell but has not been able to regain sustainably.
The rallies over the past four years have failed to move above the prior rally peaks (see arcs, left), representing selling into strength. Both the weekly and monthly momentum models have been vacillating between positive and negative for three years, giving little conviction in either direction.
The first major rally push needs to overcome 1,200, then the prior peak and the 2013 downtrend at 1,238, and then regain the 2005 broken uptrend at 1,250. On the other hand, if weakness resumes, as it seems as we go to press, and 1,100 is breached again, our outstanding target at 1,000 may come into play (see arrow, right). This was a small portion of Yamada’s 50 page report. To subscribe to Louise Yamada Technical Research Advisors CLICK HERE.
***ALSO JUST RELEASED: Fear And Greed Index Warning, Plus Sir Isaac Newton And The South See Bubble CLICK HERE.
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