Gold's Tops Hold, Next stop 1300
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The equity markets are closed today; however, the futures markets are open. Equity futures are higher which would have led to the seventh day in a row of gains. Just three weeks ago, equities looked like they were going to collapse. Now they look like they may never go down again. Will the “rip your face off” rally continue or will Darth Vader return?
Gold has followed a very similar pattern as equities: making lows and then rallying. Gold has reached the peak of its move and is now selling off, looking like it will test 1300. Based on the movement in equities and the U.S. Dollar, gold has not performed as well as it should have.
With the cryptocurrencies apparently back on track and Bitcoin back over 11,000, there should now be some added pressure on gold. With expectations of the dollar bottoming and the Fed losing control of interest rates, expectations are a selloff in gold is next up and a test of the bottom end of the range is next.