The Cork Board

[investor15]

Final Capitulation in Gold?

POSTED ON OCTOBER 2, 2013
BY CEO TECHNICIAN

Yesterday’s $50 puke in gold futures to kick off the month of October may have laid the final foundation for a massive multi-month bottom in gold. The $1276 level in December gold futures is not only important support from the summer, but it also happens to be a key Fibonacci retracement level:

Click to enlarge

GC_Daily_10.2.2013

With the vast majority of gold market participants caught wrong footed once again by this morning’s bullish reversal, the stage is set for a much larger upside move back above $1375. Moreover, the macro backdrop is quite constructive with the US dollar accelerating to the downside and Treasury yields continuing to soften. Gold bulls will want to see the rally hold today with a daily close above $1320.

http://ceo.ca/final-capitulation-in-gold/