Gold’s Bullish Trend is BrokenPosted 09/29/2017 9:36AM CT |
In the early morning trade, December gold is slightly up and currently trading at $1,290.1. However, it is trading $10 higher than yesterday’s low. Yesterday, December gold hit its lowest level since mid-August and bounced up off its 50% Fibonacci retracement point. With the gold chart technically broken, it will be hard in the short-term to get and stay back above $1,300.0 an ounce. You’ll need more aggressive rhetoric from our President, North Korea, or even some kind of physical action from the two. If you get nothing from that direction, then a bad jobs number next Friday or some solid evidence of inflation could do the job as well.
If you take a quick look at the daily December gold chart, you’ll clearly see that last week it broke its bullish trend line from early July. Therefore, unless we see any action which I mentioned above, I would consider watching that bearish trend line which is highlighted below on the daily gold chart. As of today, it comes in roughly at $1,310 an ounce.
Dec ’17 Gold Daily Chart