| Despite a rally this week, the broad market remains on edge and any downside in equity markets is likely to spur safe haven demand for gold. Treasury bond performance has mirrored that of gold recently, showing that after a period in the wilderness gold is once again used as a hedge against equity market volatility. The gold chart pattern is set up very bullishly, and should the pattern play out we will likely see a $50 move to the upside in the near term.
In last week's article I noted that if we were to move higher than $1217 early in the week we would then have a bullish 5 wave move up from the lows, and as long as we did not exceed $1193 on the subsequent retrace, the chances were that a rally would ensue...............................................Full Article: Source
|