Final Capitulation In Gold?
Tommy Humphreys | Oct 02, 2013 01:02PM ET
Tuesday’s $50 hit in gold futures to kick off the month of October may have laid the final foundation for a massive multi-month bottom in gold. The $1276 level in December gold futures is not only important support from the summer, but it also happens to be a key Fibonacci retracement level:
With the vast majority of gold market participants caught wrong footed once again by Wednesday morning’s bullish reversal, the stage is set for a much larger upside move back above $1375. Moreover, the macro backdrop is quite constructive with the US dollar accelerating to the downside and Treasury yields continuing to soften. Gold bulls will want to see the rally hold Wednesday with a daily close above $1320.
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