(Kitco Commentary) - Tuesday, I showed you an updated view of the flag formation in gold. As was expected, yesterday’s FOMC was the catalyst for the breakout, which came to the upside. The 4-hour chart below shows the dramatic follow-through higher once the topside of the flag was cleared.
The chart below shows what is looking like another triangle in progress on a much shorter 15-minute timeframe. I anticipate the resolution of this formation to be another leg up, as bulls continue to prove why they deserve the benefit of the doubt. That said, I will continue to exercise extra vigilance up here – while respecting the parameters of geometric price formations, as they present, in the unrelenting battle to manage risk and keep emotions at bay,
As seasoned gold bugs might know – Fridays can be a host to big moves in metals that seemingly come from nowhere. I think the next few trading days will continue to be eventful in metals.
Thanks, and good luck.
