Safe havens, like the yen and US 10-year, see action amid growing concern. The Japanese yen gained over 1.25 percent, and the US 10-year yield fell below 2.20 percent. The precious metals complex were big winners following the non-farms payroll anomaly on Friday. Gold , up over three percent, reaching $1,239 per toz. before seeing some profit taking. Silver seen a rare surge higher, up over five percent to $17.12 per toz. When in doubt, gold sees support – as it always has.
Gold , technically, is looking strong. Bouncing nearly $100 per toz. since the $1,140 low of November 30, price action has broken out of the major . Key resistance levels of $1,212 and $1,224 look to have been turned into support. The next level of resistance could be a hard nut to crack, but the growing global concern over demand and growth could allow gold to close above $1,240. A close above this level will give gold the opportunity to test the 200-day , a level not tested since August. Price action will likely grind higher into year’s end because the majority of equity investors still remain highly – almost ignorantly – .
The indicator (DMI) is showing the + DMI ticking upward, signaling bullishness within the price action. A convergence (sending the – DMI below the + DMI) will help gold’s march higher.
I, among a select few, has been forecasting such events for quite sometime. Institutional selling pressure will eventually give in.
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