Everyone’s talking about it…..head and shoulders pattern in gold! And if everyone is right, it must be getting ready to happen.
I’m not convinced yet, however. The last few days have seen an impressive bounce off the 30-day moving average (gold line), and again has put some space between it and the 50-day (blue dotted line). Silver, too, had a nice day but did sell off mid-session a bit.
All of this took place with the US Dollar trading over 81.50. It’s unusual but shows just how much investors are hedging the threat of inflation and/or seeking safety.
The plan is now simple – stay long miners and silver as long as the 50-day holds support, which is now 1,352 on the /GC contract. A move below may be a test only, but it is worth watching from here.
Until then, gold and silver (and the dollar) continue to light the way upward and tell us what the equity markets may not – demand is in metals and commodities, not stocks.