goldoct2816
This post is in line with the idea that gold has one more drop for this downturn before going on to make new bull market highs. Gold was heading down yesterday, but when the news about the FBI reopening the Clinton email case hit the wire it rocketed higher. Unlike some other members of the forum, I do not see the action in gold yesterday as bullish. First, even though the excitement of the news caused gold to breach the upper trend line, it was unable to sustain those gains and ultimately closed below that trend line at the end of the day/week. Second, the temporary breach of the upper trend line was purely a reaction to a news event, which, as we’ve seen time and time again, do not usually change public sentiment in any meaningful way for more than a few hours. Third, the GLD rallied on the news yesterday right up to Avi’s resistance level, which he has at 122.75, and then pulled back. Fourth, the miners did not even begin to deviate from the downward trajectory that they began last Thursday.