Loading ...Gold – I expected fall to maybe $1230 – exceeded by a bit.
Here is my chart that shows that gold has just fallen to a sloping support line at around $1227 that has lots of prior daily closes.
I had been visually expecting a fall to around $1230 but $1227 is probably OK based on this chart. However, there is no more room to fall without a violation of the recent consolidation trend channel:
It’s not too elegant that the price has dropped from the median line of this pitchfork in my view. However there are a couple of previous nasty large red candles as precedent in the past couple of months:
Nice work Dave.
well done Dave
Very nicely done.
Thanks guys. Price has sunk a little further on Wednesday taking gold as low as $1217.40 but is now at $1221.30/$1222.30 Bid/Ask on Kitco spot price.
The 1224-1227 level is such an important support and resistance level from the past, all the way back to the fact that it was the price high in late 2009 on the way up.
It’s also interesting what people have posted on the gold:oil ratio which has dived to 25 (24.99 now shown on stockcharts.com’s $GOLD:$WTIC chart.
I would say the lowering gold:oil ratio would tend to be inflationary rather than deflationary, as would the lower gold:silver ratio but it’s not nice to have that happen on a gold decline. It is not going to help the bottom line for gold miners, which have had everything ideal going for them since the start of the year, low oil, climbing gold, etc.
My computer keys are getting sticky with mango chutney. This shows: do not read Goldtadise while having your lunch!