Losing Its Shine?
The most visible precious metal in Gold last week did something technically unsound and may have predicted this recent softness. Notice on the WEEKLY chart below how intraweek it poked its head above a bull flag formation, but was rebuffed at the very round 2500 number and CLOSED almost one hundred handles below the highs for the week. We know from FALSE moves come fast ones in the opposite direction and both silver and gold are trading off as of this writing at 7am London time. Sure anything can happen the rest of this week, but with all the uncertainty globally with Israel and the assassination attempt one would have thought the metal would have behaved better. The longer-term MONTHLY chart shows how apprehensive gold has been looking for a 4th straight month CLOSING well off intramonth highs following the breakout above the 2100 bullish ascending triangle in March, following back-to-back doji candles in January and February. The breakout on the MONTHLY chart carries a measured move to 2600, and one should remain constructive, as nothing goes up in a straight line. Look for the 2300-2350 area to hold.