CPI: Gold and stocks - time to fly? (or fail to launch)

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CPI: Gold and stocks - time to fly? (or fail to launch)

It’s no surprise that gold was at a technical inflection point just ahead of the CPI data this morning. The below 4-hour chart shows the price hitting the top of the channel I have been showing for quite some time .

A breakout to the topside would reinforce the notion that gold is set to move higher in the medium term and maybe a signal to add to positions for those already long on this trade or perhaps to initiate a position if on the sidelines. I still think the test for bulls will be at the 50-day MA shown on the daily chart below.

Of course, I will be watching out for a dip that bulls step into buy on this morning’s inflation data. I am still not adding to positions in the stock market yet: That said, again, triangles like to break to the flat side, and one is forming with that flat side just about at the 4500 level I have been showing for quite a while on S&P futures.Thanks, and good luck,Follow J_GidaroDasilva jdasilva@kitco.com www.kitco.com

 

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