Gold bulls are thus far failing to hold the $1650 mark, but they have not let bears completely run amok over price, as the September FOMC low remains intact.
However, what bulls need to see is for the price to perk back up over $1650. Even more importantly, $1685 needs to hold, at a minimum, for an extended move to $1705, ideally as Stochastic RSI stays overbought. The timeframe from mid-August to late September is the exact opposite of what gold bulls want. Note how the price failed to break over the 50-day moving average just as stochastic RSI exhausted, then stayed oversold as the price turned back into the downward trend. A breach of the September low opens the door to the 15-handle.
All of the above said: A zoomed-in view of price action every day can blur long-term perspectives, which is why it is important to keep the wide-scoping fundamental economic backdrop in mind when owning precious metals for the long, long run.
Thanks and have a nice day,
