Nice Action in Gold!

-edited

Gold responded to something today (or perhaps nothing), but the action is technically very bullish, especially monthly.

On a daily basis, gold held the $1280 to $1310 level then jumped higher today by $22.70 to $1344 for no apparent reason.

Regardless, the move was long overdue due to increasing deficits and other related issues including absurd proposals to waste $100 trillion on New Green Deals. Since the latter is years away, at least, I doubt that's the reason.

Regardless, there does not need to be a reason for today. Fundamentally gold is way undervalued. Today it rose.

Gold Weekly Chart

Gold is approaching resistance at $1377, $1362, $1369 and at $1393 as show in the monthly chart. I do not expect this resistance to hold, but it may take a while to bust through for purely technical reasons.

Gold Monthly Chart

There is multi-year resistance, dating to mid-2013, at $1393. Technically speaking, if gold can break through that resistance, there is little further resistance all the way to $1798.

I expect the action to play out that way.

Mike "Mish" Shedlock

Comments
No. 1-7
ndhur
ndhur

buy<b>gold hammer</b>see

Jackula
Jackula

Gold is and has been money at the times it mattered most for most of recorded history. Holding a little is a good idea. Studying the fall of the roman empire is very enlightening for those of you that doubt this. If its such an archaic relic why does every central bank maintain vast reserves with China and Russia adding to them yearly?

truthseeker
truthseeker

Well you wouldn’t answer me the other day, so when I think it’s JP Morgan Chase comes out with their new cryptic currency or coin r u at least somewhat worried that some may dump gold and buy the bank backed currency after bitcoin shot up the way it did?

CCR
CCR

Not sure I like the fact that the Fed is the largest holder, not exactly smart money.

Mish
Mish

Editor

"omg, there simply is NO fundamental value for gold. If you disagree I'd love to see the analysis."

OK : Gold is money, nothing else. It has been for centuries and fiat dictate cannot change that fact - The Fed is the largest holder