I recently suggested the probability was that a range would form between $1820 and $1850 spot gold. Although the price did, in fact, dip into the $ 1820s the next day, bulls would have done well to continue to buy the dip. In the same piece, I also mentioned that an extended target of $1880 to the upside was in play; and yesterday evening, spot gold touched $1881 before turning back down.
The below daily chart shows that gold bulls still have the momentum. On the daily timeframe, with stochastic RSI yet to get into overbought territory (which it may stay in once there), a bullish sign, regardless of a possible pullback to $1850 before the next move to what is likely the $1905/20 spot level.
The huge reversal in the US 10YR bond yield last week clearly indicates that the support level we have been showing, marked in yellow below again, is soon to be tested.
I have been posting the below chart of ticker HGU, 2x Leveraged Canadian gold miners ETF since the end of September 2022, with the arrow showing the potential target for those who might have the intestinal fortitude to buy (at what turned out to be the low) and hang on. For those along for the ride, I expect resistance somewhere in the yellow zone.
Thanks and have a great week,
