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A medium term trend change in Gold? S&P approaches key level

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I thought the bounce might make it to $1990 last week, but bulls fell $5 short, with a top seemingly having occurred at the $1985 spot. Price has now broken below the trend line I have been showing; again, caution is warranted on the long side.

Weekly gold:

Note support in the $1860/45 region, which coincides with a mean reversion to the bottom of the weekly Bollinger band range. In my opinion, weekly momentum should stretch all the way down and turn back up as one indicator that a price bottom is forming/in.

In the meantime, S&P futures have just a hair to go before touching the top of the resistance level I’ve pointed to for quite some time. Traders can decide whether they are content with a profit or want to wait to see if an upside breakout of the triangle occurs. If a breakout occurs - I think the next long target is 4500, as shown in the daily chart below in blue.

If you bought indices in fall/winter 2022 when I originally took on a contrarian stance – you can probably afford to continue to hold for more evidence that at least a medium-term top in stocks is imminent.

Thanks, and good luck

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.