In the last few Gold & Silver Trading Alerts, we warned that gold may temporarily move higher and that the nearest reversal date is today or on Monday. Consequently, today’s upswing should not be surprising. However, we wrote about the possibility of gold moving about $10 - $15 higher and it’s about $19 higher, so you may be wondering if the above is a breakout.

In short, it’s not. Gold moved to its previous high of about $1,300 (the GLD ETF even moved above its own 2019 high, but gold’s price is more important than the ETF one), which serves as a natural resistance. There was no breakout, let alone a confirmed one. The borders of the triangle pattern are not as important as the previous high with regard to the strength of resistance. The important thing about the triangle is its vertex, which is either today or on Monday. The lines are rather unclear, but they point to today’s reversal more closely than to Monday’s date. Consequently, the rally in gold that we just saw might already be over and this might be the final top before the plunge that we described i.a. in today’s regular Gold & Silver Trading Alert. In short, today’s rally is - approximately, but still - in tune with what may be viewed as normal within the current medium-term downtrend.

As always, we’ll keep you - our subscribers - updated.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager