Has Gold Tipped Its Hand Today?
Today was an interesting day in the gold market because both gold and the US. Dollar were down. Usually when the dollar is down, gold will move higher but that is now what we saw take place today.
GLD was down 2.23% and made a 10 day low. In my humble opinion, I consider today's price action in gold as a warning sign that we may see a move lower in the near future. I think gold is tipping its hand here and warning us that it wants to go lower and not higher.
You'll notice in the above chart that GLD is approaching the low that was made on FED day. I'm sure you remember how gold exploded 2 weeks ago when the FED announced they will be buying bonds which caused the dollar to drop and gold to rally. If the gold market was really bullish, we would not be getting a second chance to get long this market close to the low that was made on FED day. If we break that low, I think we'll see this metal come under some serious selling pressure.
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4 comments:
I have had a lot of trouble predicting gold. It's inverse correlation with the dollar seems to no longer be "the rule". Where's a trader to go?
Hi Kevin. Thanks for the work you do and for sharing your thoughts. I remember awhile back you had a very good gold chart. Is that chart still valid? (At the time, it was one of the best charts I've seen.)
Thanks again.
Kevin don't you see a H&S forming on GLD's chart? thx
I agree with Dacian, look at the double short etf, DZZ, there's an inverse SHS.
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