While the stock market isn’t seeing the strong bounce that the Federal Reserve was trying to manifest via trillions of freshly printed dollars thrown at the bond and credit markets, gold is loving the massive increase in the money supply. Price is currently testing highs not seen since October 2012 near $1,800 which is where the current resistance level rests. I’ve been expecting a re-test of the all-time high of $1,923 by the end of the year, but at this pace we may see it within the next month or two.
After finding recent support at the 61.8% Fibonacci level which indicated uptrend continuation, price has now pushed above the 78.6% Fib level which is the most bullish of the Fib levels for price to be trading above. As long as price remains above the 78.6% level the trend can be expected to continue upward. Any pullback that holds above the 61.8% Fib level can be viewed as a bullish pullback and a buy opportunity.
The Relative Strength Index(RSI) shows the green RSI line at the 75 level which indicates strong momentum behind price. Above 50 is bullish, above 60 indicates strong bull momentum. The purple signal line is also above 50 and rising which indicates that the intermediate momentum trend is bullish along with the short-term RSI momentum trend.
The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line, with both lines above the 0 level. This indicates that overall momentum behind price is bullish. As long as the green PPO line is above the purple signal line the short-term momentum will remain bullish.
The overall view on gold remains bullish with the expectation of a new all-time high above $2,000 being made this year.
After finding recent support at the 61.8% Fibonacci level which indicated uptrend continuation, price has now pushed above the 78.6% Fib level which is the most bullish of the Fib levels for price to be trading above. As long as price remains above the 78.6% level the trend can be expected to continue upward. Any pullback that holds above the 61.8% Fib level can be viewed as a bullish pullback and a buy opportunity.
The Relative Strength Index(RSI) shows the green RSI line at the 75 level which indicates strong momentum behind price. Above 50 is bullish, above 60 indicates strong bull momentum. The purple signal line is also above 50 and rising which indicates that the intermediate momentum trend is bullish along with the short-term RSI momentum trend.
The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line, with both lines above the 0 level. This indicates that overall momentum behind price is bullish. As long as the green PPO line is above the purple signal line the short-term momentum will remain bullish.
The overall view on gold remains bullish with the expectation of a new all-time high above $2,000 being made this year.