Update on Gold: Aug 8, 2019

In our last update [see: June 17 Update on Gold] we looked at GC’s latest assault on the horizontal resistance at 1370 — the target we established when resuming a long position in May.  It had tested this resistance multiple times since 2016 — and failed.  Given that DXY was overextended, this time seemed different.

History says GC will be rebuffed somewhere between today’s highs and 1380.90 and will retreat to around 1224-1241.60. But, as long as GC can remain above 1346.70, it makes sense to remain long with stops back around 1345. Maybe this will be the time it finally breaks out.

In fact, this time was different.  GC popped through 1370 with little fanfare and, after some hemming and hawing, tagged our next upside target at 1484 earlier this week.

This begs the question we’ve been asking for several years, now: what will happen if gold ever completes the gigantic Inverted Head & Shoulders pattern?

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