Gold's bearish divergence has played out well, combined with a measured move to lows from a head and shoulders top.
We have bounced strongly today, just as the dollar is posturing higher. The dollar and gold CAN and Do rise and fall together, which is often overlooked. Yet with stocks falling too, this gives Gold a muddled outlook.
For as long as Gold survives a cataclysm in stocks, the parallel lines should prove to be support for 2018. I still expect a convincing break of 1360 in 2018, a collapse below 1000 notwithstanding. However, I prefer a neutral outlook on gold for now.
We have bounced strongly today, just as the dollar is posturing higher. The dollar and gold CAN and Do rise and fall together, which is often overlooked. Yet with stocks falling too, this gives Gold a muddled outlook.
For as long as Gold survives a cataclysm in stocks, the parallel lines should prove to be support for 2018. I still expect a convincing break of 1360 in 2018, a collapse below 1000 notwithstanding. However, I prefer a neutral outlook on gold for now.