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Monday, April 25, 2016

Gold Consolidation - Apr 24, 2016

As the market continues to gyrate with an upward tilt, gold is consolidating after breaking out. Gold is currently at the same level where it was 2.5 months ago. This consolidation by time is very healthy and shows that gold has a bright future ahead of it.

Gold's consolidation over the past couple of months has traced out an inverted Head and Shoulders pattern, which suggests that once Gold breaks above 1260 level and holds for a few days, we will see significantly higher prices.

The Inverted Head and Shoulders pattern is shown below.


Gold's rally since January has brought it into a bull market. This bull market can last for a long time and price of Gold can increase substantially.

Gold price action has significant implications on the broader economy. Does it mean the US Dollar will devalue or are we going to initially see flight to safety? We shall see...

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