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Is Gold Spike And Reversal Lower Creating Bearish Pattern?

ByChris Kimble
Published 01/10/2020, 03:12 PM
DX
-0.03%
GC
-1.49%
Weekly Gold/Dollar Ratio

Gold bulls are feeling pretty good right now.

Precious metals have been rising, the dollar has been soft and geopolitical tensions are causing investor concern.

But as I type, the price of gold is facing an important intermediate-term juncture.

In today’s chart, we look at the ratio of the price of gold to the U.S. dollar, which produces a similar pattern to gold priced in dollars. The ratio is currently testing the top of a 4-year rising channel this week at (1).

And earlier in the week, gold tried to break out above this channel resistance before reversing lower – see the long, tall wick.

Gold bulls are clearly hoping for a breakout this week, and not a bearish reversal pattern.

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Latest comments

Jan 11, 2020, 21:02
There's always the bears,without them there wouldn't be an upside.
taylor jasonJan 11, 2020, 20:49
pattern is irrelevant. geopolitical risks plus economic risks is the real indicator for golds direction
Show all comments
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