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
Bam_Man
Bam_Man

That chart is a textbook example of a "Cup-and-Handle" formation. Once the handle has formed (and it looks like it has), it is a VERY bullish pattern..

shamrock
shamrock

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

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

CCR
CCR

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

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?