Buzz & Banter
Today is shaping up to be somewhat interesting for gold. The dollar is weaker again following yesterday's interventionist bounce, yet gold is lacking a bit of, well, luster. (Sorry pun haters.)
The December contract looks as if it wants to take a bit of a breather, and an initial double bottom break on a print of 380 would confirm it. Weekly momentum has been positive for 9 weeks now and these momentum readings typically oscillate on a 6-8 week time frame. This is a fancy way of saying that Dec. gold looks tired here.
This isn't really a problem for those with a big picture bullish view for the yellow metal, just an observation on near-term noise. The problems only begin to show up if gold falls through the 370 level. That would violate the intermediate trend line support, while on a longer-term basis it would take a move below 330 to cause any real technical trouble.
I'll try to get a couple more posts out this afternoon, but be aware that today will be my last posts of the week as I head to Lexington, KY tomorrow for the opening weekend of the Keeneland fall racing meet and a lengthy visit with the three B's: Bourbon and Bourbon. Wait, Kevin, that's only two B's! I know, but after two bourbons who cares what the third B is?
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