Gold in Stair-Step Pattern Ahead of Potential Thrust
Commodities / Gold and Silver 2011 Nov 08, 2011 - 01:42 AM GMTBy: Mike_Paulenoff
Spot gold continues to claw its way higher despite an otherwise "risk-off" profile for the session in equities (as seen in our hourly chart comparison with the e-mini S&P 500), along with bonds and foreign exchange.
The stair-step pattern off of last week's low (from Nov 1) at 1681.30 has the right look of a forthcoming vertical acceleration towards 1820 next. Only a sudden downside reversal that breaks key near-term support between 1775 and 1765 will compromise my near-term outlook.
Gold and the SPDR Gold Shares ETF (GLD) are attracting capital along with the U.S. bond market and the U.S. dollar. Why? Take your pick: flight to safety, geopolitical risk, Euro-Zone-implosion risk, and expectations that the ECB eventually will have to become the bailout receptacle of last resort, which is inflationary.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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