Gold: Meandering for the Summer?

by JDH on July 29, 2017

Gold had a somewhat obvious double top at the April and early June highs, so a drop from there was not unexpected.

Of concern is that the correction down to just below $1,205 on July 10 was below the previous low of $1,214 on May 9.  “Lower lows” are not good to see if you expect gold to rise and not fall.

Gold had a strong week, touching $1,265 on Friday, which is obviously much higher than the two previous lows, but nowhere near the double top high.

I don’t know what happens next.

Given my uncertainty, I’m on the sidelines.  I’m not playing any leveraged ETFs at the moment, either short or long.  I still hold my core gold holdings, and a rise to $1,300 may convince me to go all in, but as of today, I’m not convinced.

Also, the weather is good, finally, so why worry?

Check back in next week and we’ll see if my mood has changed.