Let’s look at the pattern.
Gold captivated investors, and with the rise in gold, silver and other precious metal prices this year, there’s been lots of market talk.
But, the chatter has quieted over the last few wks as the run in precious metals has paused to consolidate its most recent run. With the Fed in focus this week, it could have an outsized impact on USD and on the precious Yellow metal.
Given that the Fed’s easy-money approach has been 1 of the catalysts for gold this year, it’s no surprise that the Fed will be in focus for gold traders.
Along with a flight-to-safety and an urge to diversify as stocks soared gold has done quite well.
Here is how the GLD chart looks now.
I am Neutral near term, and Bullish long term, here is why.
GLD is in a place where it needs to see a rotation over last week’s high at 184.68. Tuesday’s high was just a 0.01 off at 184.67.
If it can clear that mark and close above it, we could see a squeeze up to the September high near 187, followed by a possible gap-fill at 189.06. Above that and the Y 2020 high is in play at 194.45, then 200.
On the Southside, a break below the 10 and 20-Day MAs signals caution. However, on a close below the 50-Day MA and range support at 181.71 Bullish traders will avoid GLD and wait for the precious Yellow metal to reset before buying again.
Have a healthy day, Keep the Faith!
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