Gold continues to knock at resistance on the flat side of the triangle we highlighted earlier this week; updated 4-hour chart is shown below. The triangle continues to build, favoring a topside breakout. Should the pattern fail, Bulls will fight hard to hold the $1740 - $1750 level.
To the short's continued dismay, stocks are higher yet again today, even after yesterday's intraday reversal . However, as we have stated in the past, traders are prone to pulling profits in advance of a significant resistance level, and one is quickly approaching in the S&P. The question is, when stocks do pull back, will the 50-day moving average hold as support? If so, the prospect of a new bull run begins to merit attention from a technical perspective.
A look at the DXY daily chart shows it is currently finding support at the bottom end of it's established channel. Stochastics indicate that there is a chance of a crash below the bottom trendline. Should the DXY find support, which is the more probable outcome, this trader is skeptical that a higher high remains in the cards, especially with the white house's glorification of"0%" inflation in July.
This may give the FED room to signal a less aggressive path moving forward - and perhaps even mention the beginnings of a successful"soft landing" in progress?Follow J_GidaroDasilva jdasilva@kitco.com www.kitco.com