From Thurs 10 Dec 20 - see here
Gold has reacted to the overall bullishness by selling off back to the 1830 level as the precious metal sees some flight of capital in these heady risk-on markets. I highlighted the channel in the previous post and today's price action underscores its veracity as the yellow rock lost almost 2% today.
Gold Range Bound in Consolidating Channel
FTSE 100 in Hurry Up and Wait Mode
In Last Thursday's Market Musings (extract below) I highlighted gold as it consolidated in its current channel. Wind forward four trading days and gold has bounced from a low of 1820 on Mon 14 Dec to a pronounced bounceback as dollar weakness and the chance of an imminent US stimulus package is rumoured
A weakness in the greenback combined with the inflationary fears of yet more money printing is bullish gold with the price action responding below.At pixel gold has retreated from the upper channel line having attempted a breakout earlier today reaching the 1865 level. It does appear to be setting up for a volatility breakout.
A close above 1865 set-ups for a renewed move north and a challenge of the previous high of 2000 with some resistance possible around the 1960 level . Rejection of the channel line around 1860 could see a pullback and potential recheck of the 200 MA at 1812.
Watch for dollar weakness and news on the stimulus as catalysts for the breakout
Gold Remains Range Bound in Consolidating Channel : Ripe for Breakout