In yesterday's blog post we discussed that if the lower red channel line gave way at 1420 -- a move down to the dotted trendline at 1403 would be possible. Today's low so far in spot is the 1403 area in SPOT GOLD. Look for a bounce into the close in the 1410-1414 area. Price needs to get back above 1420-1425 to neutralize this pullback. The key now is whether another probe of the dotted trend line is up for grabs. A lot will probably rest on what happens in Saudi Arabia on Friday and the planned demonstration. Today's Louis Cypher post on a China deficit is a good one ------ the USA ran a deficit for 30 years ----- and the DOW went from 1000 to 12000 during that time. IF anything --- China is probably spending the US Dollars they have -- and they dumped more than they took in for February. That's my current read --------but
I am not saying that the GLOBAL situation is not dire ---- but it sure sounded like a lot of "spin"
In summary --- lets see if gold can firm at the close in the 1410-1414 area.