Loading ...You would expect that with all the events of the last 24 hours that the usd/jpy chart would’ve broken down by now. All we got was a false break down and now it’s pressing the top of its channel. I feel as though it’s going to break out and that will be bad for gold. I also have the same channel that highroller just posted in gold and it can’t seem to break out either. I would hate to say it but these are not good signs to me. Perhaps we just go up and down in a slightly upward channel in gold… The problem is that the miners are not playing along as much as one would like… so this will continue to be tricky waters.
Also, I admit that this GDXJ chart below chart is chaos but check out the red channel. Looks like a bear flag to me
Great update–thanks PK
I agree with you totally. What’s interesting though, is that Gold has held around 1,269 while the USDJPY went from 110.40 to 110.95, so there’s a bid under gold. But if USDJPY breaks out to the upside I’d say targets 111.75 so if we get another full point from here will gold still be able to hold steady? Thats the big Q. Of course a downside break would help gold to the upside.
You are correct about gold holding. However I think the correlation disconnected temporarily because of the Syria news. I think that drove gold more than anything. We’ll see if the correlation is still strong going forward my inclination is to think that it will be after the Syria stuff dies down a bit
annddddd there she blows
Yep. I think a lot of people got caught on this trade and if gold loses its 200 MA at 1261, it’s all she wrote. Let’s see where the day ends but I think the junior miners are pointing to a larger correction.