The whole week in gold will be a story about a fight at the weekly 200 Moving Average.
Today it is around 1309$. If we close below 1309$ significantly by the close of any day this week we are heading down into the daily cycle low.
It means we will have a 4-8 days decline till the end of next week.
The DCL could be around the weekly 10 (1260-1280$) marginally we could break below that. In the past DCLs occured at the 10 . (highlighted by red ellipse)
I'M not going to play this decline. I'm waiting for a good entry point for a gold long. We are in a new intermediate cycle- hopefully the 1st daily cycle will end soon. The second daily cycle will be the powerful move up so I would like to catch that move.
Though we broke above yesterday's high we couldn't hold the gains till the daily close. So the daily candle doesn't look too bullish. I think tomorrow or Friday we will have the answer:
are we moving to the daily cycle low or we are breaking higher.
WOuld be good to know what are the banks plan with gold by the end of the week...
I doubt gold will break out before the 4th of July. Tomorrow is a before celebration low volume day. On Monday the market is closed in the USA.
If we break out today night or tomorrow USA will miss the whole gold rally. In the last 5 days mostly the USA was buying gold.
WIthout the USA I dont know how could gold soar. SIlver broke that 2015. Jan high it's true. But it's just following gold as silver was depressed in the last few months.
Not silver is leading gold. Tomorrow profit taking is coming in the PMs before the long weekend. Options expiry tomorrow also...