Aug 22, 2017
- After rallying almost $100 an ounce from the July lows of about $1210 (basis December futures), gold is consolidating its gains.
- Fundamentally, there isn’t much immediate time frame news from either the fear trade or the love trade. That’s the root cause of this sideways price action, and its healthy.
- To get some technical perspective on the consolidation, please click here now. Double-click to enlarge this short term gold chart.
- A small head and shoulders top pattern has appeared, and it suggests more consolidation will occur before the upside action resumes. This scenario would see gold move down towards $1272, and then rally towards $1330.
- Please click here now. Double-click to enlarge. On this chart, a slightly bigger head and shoulders pattern is apparent. It suggests a deeper correction to about $1250 may occur.