It has been a choppy consolidation so far for gold, with intraday weakness being met by willing buyers. Gold is still a significant distance above its 50-day MA, and MACD continues to fall, so this correction may have some way to go.
This reading is reinforced by the weekly chart, where RSI has just been repelled at the 70 level, and the MACD histogram has begun to turn down.
GDX has been showing some strength, with the top of the long-term channel providing effective support so far.
A look at the daily chart shows that GDX has been trading in a tight range between about $43.50 and $46. A breakout from that range may be imminent. So far, RSI and MACD have been showing a bearish divergence from the price.
The U.S. dollar index has, as usual, been moving inversely to gold, correcting choppily upward. It could bounce to the Fibonacci 38% retracement point near 79.4 or make a 50% retracement to the 50-day MA near the former long-term support around 80.It would be a sign of exceptional weakness if $USD failed to reach the bottom of the falling wedge at around 79 before resuming its secular downtrend.
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