Which Way Will Gold Run?

Gold ended 2016 with a whimper. The last 2 months saw it fall from 1315 to a low of 1125, almost 15% lower. It was because of the strength in the Dollar, or Trump’s policies or whatever. I don’t really know. And that is OK, because as soon as there was a reason assigned to the drop it reversed, driving back over 1200 in the next 2 weeks. This was also attributed to Trump’s policies. OK, whatever.

At that point I talked to a group in Canada about the shiny rock and its prospects. We speak every month or so about Gold. Neils asked me what I thought about Gold for the near term, up or down? My reply was sideways. He laughed. But there was nothing about Gold that excited me right then. It had bounced to the same height as the failed November 2016 bounce, and stalled at a significant Fibonacci level, a 50% retracement of the entire 2016 rally. I offered Neils an expanded view. Gold looked good as a trade above 1215 and as a short under 1185. In between it was off limits.

And has not broken that range since. As I write this, Gold is sitting near the top of the range, pressing near 1215. But again stalling. Will it break it to the upside this time? That is anybody’s guess, and I do not speculate. But if it does then Gold will be on a streak to the upside and sees resistance next near 1250. Until then 1185 to 1215 is no man’s land.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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