Overnight session:
The action in gold is intriguing. We have had so many false breakouts, but this one looks like it could stick. The dollar is about to lose its 50 dma at 72.91 just as gold moves above its 50 dma at 894. All the ingredients are in place: the Fed warning about inflation with no rate hikes, dollar fall and crude bid. The coast should be clear as long as gold holds 888/890 on any pullback. As I type, we just printed 896.20, a higher high from Monday. Weekly pivot is 894.20. Lots of confluence in this area. This could be the last chance for gold bulls to push through.
The action in gold is intriguing. We have had so many false breakouts, but this one looks like it could stick. The dollar is about to lose its 50 dma at 72.91 just as gold moves above its 50 dma at 894. All the ingredients are in place: the Fed warning about inflation with no rate hikes, dollar fall and crude bid. The coast should be clear as long as gold holds 888/890 on any pullback. As I type, we just printed 896.20, a higher high from Monday. Weekly pivot is 894.20. Lots of confluence in this area. This could be the last chance for gold bulls to push through.
This entry was posted
on Thursday, June 26, 2008 at 6/26/2008 05:49:00 AM.
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