Oct 13, 2011

Gold Still In No Man's Land

I haven't been blogging about gold lately simply because I don't have a clue what yellow metal is up to. Gold obviously found support at the rising trendline, which it successfully tested but acted indecisively since then. A nice rounding bottom pattern even convinced me to buy some SLV in expectation of a snapback rally, but action in precious metals sector in general is feeble.


Anyway, I still believe the most probable scenario for the next month or two is some sort of consolidation inside the channel. Any move below the channel would probably mean much lower prices for gold. A breakout above it would open new posibilites for a continuation of an established uptrend. We'll probably have to wait a few more weeks for confirmation.

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