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Resistance at 1980 high
Gold's bull run is stalling for now at the all-time nominal high of $850 recorded in January 1980. On Thursday the yellow metal failed to surpass Wednesday's intraday high of $848. It would not be surprising to see it overshoot $850 by a bit before correcting, but a period of consolidation is likely here after the recent steep rise. The long uptails on Wednesday's and Thursday's candlesticks support this scenario. Gold is likely to pull back to touch the upper trendline, if not break it, before proceeding any higher.
On Wednesday silver shot up to touch $16.27 before closing down at $15.33. Then on Thursday it fell as low as $14.86 before closing up at $15.52, practically at a Fibonacci level. The long tails on the candlesticks for both days visually represent the indecision in the market. It is likely that silver will trade in a range for a while as it digests its recent gains.
Speaking of indecision, the long-legged-doji candlestick formed by GDX on Thursday depicts a fierce fight between the bulls and the bears, with the price of the gold-mining ETF closing practically where it began the day, in the middle of Tuesday's opening gap. GDX may trade in a range here and could retrace to the Fibonacci level near $49. If support there fails, GDX could fall back to stronger support at $46.
On Thursday, the U.S. dollar index did not fall as far as Wednesday's intraday low of 75.08 but found support near the Fibonacci level of about 75.32. The dollar has fallen steeply for a month, with only the briefest of interruptions, and could pause for a breather here.
Gold's bull run is stalling for now at the all-time nominal high of $850 recorded in January 1980. On Thursday the yellow metal failed to surpass Wednesday's intraday high of $848. It would not be surprising to see it overshoot $850 by a bit before correcting, but a period of consolidation is likely here after the recent steep rise. The long uptails on Wednesday's and Thursday's candlesticks support this scenario. Gold is likely to pull back to touch the upper trendline, if not break it, before proceeding any higher.
On Wednesday silver shot up to touch $16.27 before closing down at $15.33. Then on Thursday it fell as low as $14.86 before closing up at $15.52, practically at a Fibonacci level. The long tails on the candlesticks for both days visually represent the indecision in the market. It is likely that silver will trade in a range for a while as it digests its recent gains.
Speaking of indecision, the long-legged-doji candlestick formed by GDX on Thursday depicts a fierce fight between the bulls and the bears, with the price of the gold-mining ETF closing practically where it began the day, in the middle of Tuesday's opening gap. GDX may trade in a range here and could retrace to the Fibonacci level near $49. If support there fails, GDX could fall back to stronger support at $46.
On Thursday, the U.S. dollar index did not fall as far as Wednesday's intraday low of 75.08 but found support near the Fibonacci level of about 75.32. The dollar has fallen steeply for a month, with only the briefest of interruptions, and could pause for a breather here.
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