When panic takes over the market, gold
is frequently the flight to safety commodity. Why? Something about the currency of a post-apocalyptic world being gold
and guns. We certainly saw that flight to gold
in this most recent market sell-off and despite the sharp rally we've seen in the S&P
has been reluctant to lose value.
I've highlighted a bullish pennant
on the hourly chart with a daily chart
just below it to give context of where we are coming from. Fundamentally and technically, buying gold
on a break of its top pennant trendline
makes sense. The move measures up to $1318.
on an upside trendline break