Gold price is precarious close to the trendline for those who use these tool. I find it too subjective and the slight of hand (angle) can make a trendline break to a bounce. What I am worried of is those 5 daily consistent lower peaks. If you include the current talk of DB potential collapse bringing down the global monetary system though its derivative counter party exposure, there is simply no rush to USDX or GOLD! Now why is that? I am instead seeing gold losing that Brexit momentum as if its death by a thousand cuts and USDX is stuck in a congested traffic. Is the market that complacent or just media beat up for selling news content? The mystery continues.... I am in a dilemma of whether to crystalise my long term gold holdings or to wait and see. Procrastination can be a savior of false panic or a benefit for early bird risk mitigation.
I suspect if we get a test of $1300 and a solid break through that psychological as well as technical support, gold specs will be the first to suffer followed by high cost producers. I elect to follow the leaders of the pack for the least value destruction if SHTF. One just never know if that could be a reality.
S2R Price at posting:
37.0¢ Sentiment: None Disclosure: Not Held
