Deep Dive on Gold

Okay, not a really deep dive, but let’s take a look at two charts.

First, a 1 year chart of gold:

The bottom over the last twelve months happened in August 2018 around $1,160, and then gold got close to $1,560 in August of this year before correcting down to almost $1,440 last month.  Gold has recovered to $1,475 today.

(It’s interesting, although likely meaningless, that both the high and low in gold happened during the month of August).

The long uptrend remains intact anywhere above $1,380, but gold needs to close above $1,500 to prove that the medium term down trend has ended.

Here’s a closer look:

There was a lot of volatility this week, with gold bouncing around on China trade deal rumors, and the election in the UK.  Gold has settled into the channel between $1,460 and $1,490, but it is encouraging to see both higher lows and higher highs in the last month.

How will it resolve?

I have no idea, but I’m holding, but not doing any new buying, so we will wait and see.

Thanks for reading; more next week.