Spy to continue fly as Gold sets up for the all time high?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday, I suggested gold was looking ripe for a correction and that stocks were likely on a path higher. Although stocks have, in fact, outperformed gold since the FOMC (and all week), the gold price hasn’t really come down; in fact, it now looks like gold is consolidating via time rather than price volatility.
The current sideways action in gold is very bullish for a run back to all-time highs at $2070 spot, in my opinion. Below is a zoomed-out daily chart with yellow boxes highlighting prior recent time periods wherein gold consolidated in a similar fashion.
The 4-hour chart shows the current sideways/upward consolidation more closely; it seems to me that sellers are getting tired…
Monday, I suggested a target for stocks at the top trendline; that target was obliterated, quickly. I also questioned whether this would be the rally to finally break out of the larger downtrend of lower highs and lower lows going back to July - As of now, I have no reason to believe this rally isn’t it; Price looks set for a test of the top Bollinger band in my opinion.
Thanks and have a great weekend.