GOLDBUGS AMEX Goldbugs Index (GOLD)

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GOLD - Weekly/Monthly Wrap
By Carl Swenlin | July 28, 2017

GOLD

IT Trend Model: NEUTRAL as of 6/29/2017

LT Trend Model: BUY as of 4/12/2017

For several months gold has been in a trading range. Considering that the dollar (UUP above) has been falling during that time, we can conclude that there is an intrinsic weakness in gold that offsets some of the advantage it should gain from a weak dollar. Gold is heading to the top of its current trading range, but there is significant resistance being encountered right now that is not visible on the daily chart. (See the weekly chart below.) It would be most encouraging if price can reach the top of that range. Sentiment is still negative.



Gold has been turned back from the declining tops line numerous times in the last two years. It is currently attacking that line again, and the rising weekly PMO offers some hope that a clean break will finally take place.



I have been assuming that the 2015 price low was the end of the gold bear market that began off the 2011 top. That is still my assumption, but final confirmation must be provided by a breakout price breaking above the long-term declining tops line, with which it is currently struggling.



http://stockcharts.com/articles/decisionpoint/2017/07/decisionpoint-weekly-wrap----7282017.html

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