The short term trend in paper gold ended just as it got started. Price closed right at short term support of 1655. Further support is down at our old friend 1625. So the chop between 1680 and 1625 continues. This particular price level has a lot of gravity and as it turns out I have acquired quite a few ounces either in this range or very near. I think this is where the physical stackers are drawing the line and coughing up their paper. Resistance is first and foremost the 18 day moving average, currently at 1658. All attempts to get above this key moving average have failed. The next level of resistance is our other old friend 1680. The technical studies are all range bound in more or less a bearish/neutral mode and are indicative of sideways chop. All in all, paper gold is a major yawnfest.
I suggest spicing things up a bit with a physical gold purchase. That yellow metal in hand has a way of getting the blood pumping. Ditch the paper market. While you’re waiting for your gold delivery, why not catch up on some FOFOA reading? I have completed the new and updated 2009-20012 FOFOA Compendiums. These PDF files now feature fully functional embedded hyperlinks just as they appear in the original blog posts as well as a complete table of contents that help source specific articles. The Blogger archives can be a pain in the ass and these compendiums are awesome for sourcing material. Your PDF reader will have search functions as well the table of contents.
We are again right on the support for the long term trend channel.