Gold continues to struggle but so far is holding its support zones. But risk remains to the downside until upside resistance is taken out. A strong US$ isn’t helping.
Looking back to the early part of the week, we all saw something that should not shock anyone who is actually thinking in an intellectually honest manner about the market.
If gold trades above $1966, that price area will become a big floor and turn miners into cash flow cows on steroids. It would become a major launchpad for the next great gold stock rally!
Big battle underway, I think that most of the attacks will happen in silver and the miners. But I don't think the cartel will want to go heavy short again, build the shorts back up -- too dangerous for them.
Prices paid by U.S. consumers surged in June by the most since 2008, topping all forecasts and testing the Federal Reserve’s commitment to sticking with ultra-easy monetary support for the economy.
While tapering appears to be off the table for the moment, the Fed will continue to soak up excess cash in the reverse repo market. By conducting reverse repos, the Fed is putting the brake on any potential for negative interest rates.
Is gold doing an A-B-C move down? The action last week indicates that the intermediate lows are in for gold. Once RSI levels hit oversold, gold will start to rally pretty quickly.
