Gold – 11 Oct

Gold made another high today and keeps the current uptrend intact. Of course the East buys and the West sells gold, so price closed lower in New York. Although 1681 was taken out, price closed below that level and therefore it remains as primary resistance along with the 18 day moving average at 1682. A close above this level targets 1705 as the next level of resistance. Support is 1600 followed by 1585. MACD looks poised for a bullish cross and stochastic has climbed into neutral territory. Notice how swing highs are made in the early morning hours (Asian market) and then are hammered down in London, then New York. This has been happening for years.

The long term chart still suggests the bottom is in gold. RSI has bottomed right at the level that has been the floor and is now taken on an upward trajectory. Price is hanging on to the 18 week moving average, a level that has provided support and the reversal point in price. Finally, stochastic is hooking at a level that has proved to be the floor. The upper boundary of the trend channel should provide resistance as the trend continues. I expect a fall rally to challenge 1800.

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