Gold Content to Range Quietly for Now
Prepared by Jamie Saettele, CMT
“A previously rare occurrence has popped up 3 times since June. That is, gold has traded in a double inside day AFTER an outside day. Before June, one had to look back to 2009 to find this pattern. The pattern is a function of volatility contraction and the plethora of orders on each side of the narrow range is conducive to false breaks. Gold rallied to a new and has pulled back in order to satisfy the false break.” The piercing of the October low triggers a bearish bias against the high but failure to sustain the intraday drop leaves me neutral. Until the market shows its hand, there won’t be much to comment on.
LEVELS: 1736.05 1750.90 1756.80 1791.49 1802.80 1819.05
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