Wednesday, August 18, 2010

Gold Continues To Rally

Last weekend I spoke about the bullish seasonal this time of year for the gold market and so far gold is moving higher right in line with the seasonal tendency.  I'm a little suspect of this rally because silver is not following along. Usually in a true bull market, both gold and silver will rally together but so far that is not happening. Maybe gold is moving higher based purely on traders trying to take advantage of the bullish seasonal this time of year.

As long as the gold market continues to move higher I will stay long, but I will be quick to exit at the first sign of weakness. I'd like to see silver begin to rally here. Lets see what happens.


Mike Truong said...

We need a quick sharp flush and a sharp move up to bring the daily stoch, RSI and MACD away from the overbought conditions and to get rid of the negative divergences. The Weekly is even worse. the bearsih divergence is now into its 9th month so I would expect some resolution fairly soon.

James said...

Unsurprising that gold is doing so well. It was kind of expected, from the start of the global recession that gold prices were going to improve.


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