4 Charts Show Gold May Be Heading Much Higher

by Alex Rosenberg of CNBC

Gold just hit its highest level since election night, and some see more upside ahead for the precious metal.

Gold experienced a textbook breakout from a symmetrical triangle or wedge, Rich Ross, technical analyst with Evercore ISI, said Tuesday on CNBC’s Power Lunch.

That’s quite bullish, Ross added.

He also pointed out that gold’s 50-day moving average has broken above its 200-day moving average, which is commonly seen as a sign of accelerating momentum.

Meanwhile, on a longer-term chart of gold, Ross notes a reverse head-and-shoulders bottom, which is made up of a low, a lower low, and then a higher low. Technical analysts tend to see this as a bullish indicator.

The pattern’s predictive potential is further bolstered by the fact that the lower low came in December, which is also where gold found a bottom two years ago.

That’s some nice bullish symmetry, Ross said. So in the short term, I like gold to move higher.

Gold prices on Tuesday rose as high as $1,298.80 per troy ounce, eclipsing by about a dollar the prior 2017 highs seen in April. The commodity has been spurred by dropping long-term bond yields and a sinking U.S. currency value.

Matt Maley, equity strategist with Miller Tabak, also sees constructive signs on the gold charts.

He does warn that we have to be a little careful, because we’ve made a series of higher highs and higher lows, and are now bumping up against April highs, so that could be a double top.

Sentiment and positioning hasn’t gotten extreme yet, Maley added Tuesday on CNBC’s Power Lunch.

Net long positions among speculators are nowhere near where they were last summer, according to CFTC data, which could be seen as a sign that there is room for more investors to turn bullish.

We’ve got a lot more room to run here, Maley concluded. I think $1,375 is a good target here.

That would imply a 6 percent rise from Tuesday’s highs.

Full article on CNBC

News andCommentary

Gold in Pounds Rises to Seven-Week High on Hung U.K. Parliament (Bloomberg.com)

Sterling Falls Sharply On Hung Parliament In UK General Election (Investing.com)

Gold Imports by India Jump Fourfold as Tax Fear Spurred Stocking (Bloomberg.com)

Banco Popular faced eurozone’s first large-scale bank run ECB (Reuters.com)

With gold mining activity nearing pre-boom levels, is this the end of the downturn? (ABC.net)

Source: Zero Hedge

Someone Just Dumped $4 Billion Of Gold Futures Ahead Of Comey Testimony (ZeroHedge.com)

40.5 Tonnes Of Paper Gold Dumped In 4 Minutes (InvestmentResearchDynamics.com)

The World’s Most And Least Peaceful Countries (Statista.com)

Spain’s Banco Popular Bailed In, Acquired By Santander For 1.00 (ZeroHedge.com)

India’s Tax Change Will Increase Gold Demand To 950 Tonnes By 2020 (Barrons.com)

7RealRisksBlogBanner

AvoidDigital& ETFGold KeyGoldStorage Must Haves

Gold Prices (LBMA AM)

09 Jun: USD 1,274.25, GBP 1,001.31 & EUR 1,139.18 per ounce

08 Jun: USD 1,284.80, GBP 992.12 & EUR 1,142.70 per ounce

07 Jun: USD 1,292.70, GBP 1,001.07 & EUR 1,146.62 per ounce

06 Jun: USD 1,287.85, GBP 997.31 & EUR 1,144.77 per ounce

05 Jun: USD 1,280.70, GBP 992.41 & EUR 1,136.88 per ounce

02 Jun: USD 1,260.95, GBP 980.39 & EUR 1,123.88 per ounce

01 Jun: USD 1,266.15, GBP 984.81 & EUR 1,128.01 per ounce

Silver Prices (LBMA)

09 Jun: USD 17.35, GBP 13.60 & EUR 15.52 per ounce

08 Jun: USD 17.60, GBP 13.60 & EUR 15.67 per ounce

07 Jun: USD 17.60, GBP 13.64 & EUR 15.71 per ounce

06 Jun: USD 17.56, GBP 13.61 & EUR 15.62 per ounce

05 Jun: USD 17.52, GBP 13.58 & EUR 15.59 per ounce

02 Jun: USD 17.19, GBP 13.37 & EUR 15.33 per ounce

01 Jun: USD 17.13, GBP 13.33 & EUR 15.26 per ounce

Recent Market Updates

Gold Prices Steady On UK Election Risk; ECB Meeting and Geopolitical Risk

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand

Deposit Bail In Risk as Spanish Bank’s Stocks Crash

Terrorist attacks see Gold Stay Firm

Trust in the Bigger Picture, Trust in Gold

Trump, UK and the Middle East drive uncertainty

Is China manipulating the gold market?

Why Sharia Gold and Bitcoin Point to a Change in Views

Bitcoin volatility and why it’s good for gold

Silver Bullion In Secret Bull Market

Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey

Gold and Silver Bullion Now Treated As Money In Arizona

Manchester Attack Sees Asian Stocks Fall, Gold Firm

Access Award Winning Daily and Weekly Updates Here

The post 4 Charts Show Gold May Be Heading Much Higher appeared first on GoldCore Gold Bullion Dealer.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s