Gold Stocks Overbought: Pullback Sets Up Potential Buying Opportunity

That’s the primary reason for the pause in the action.Those concerns are exacerbated by the fade of inflation in Europe. That could theoretically put pressure on theAll fiat is clearly on a long-term road to a place best described as financial Hades versus gold.On this weekly chart, I highlighted the right shoulder action on Stochastics that was both the technical launchpad for the breakout over $2100 and rocket fuel for the surge to the $2400 target zone.

Here’s another look at the flagpole and potential flag pattern, via the weekly close chart. Simply put, the price action is magnificent!I suggest waiting for a return to the 50 zone for the index and 30 or lower for RSI. If that happens as gold arrives at my buy zone of $2220, buyers of gold, silver, and miners should fare quite well.That’s because a dip from $2440 to $2270 is roughly a 7% price sale.

The Fed meet today is important, but the Indian election is likely even more so. The winner is now scheduled to be announced June 4, and the nation’s citizens are likely to return to the gold market then.

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