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Gold Currency Index Moves Below Uptrend Support

|Includes:SPDR Gold Trust ETF (GLD), SGOL

The Gold Currency Index (NYSE:GCI) closed moderately lower today, moving slightly below support at the lower boundary of the uptrend from late January.

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Technical indicators are now bearish overall on the daily chart, supporting a continuation of the decline from last week. A subsequent close below current levels would confirm the break below uptrend support and signal the likely development of at least a short-term correction. Gold in US dollar terms broke below its comparable uptrend support level last week, so the GCI breakdown confirms that the consolidation from May is still in progress.

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However, as we discussed in the last weekly review, the next Intermediate-Term Cycle Low is approaching and gold market behavior during the next several weeks will likely provide the next meaningful signal with respect to long-term direction.

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Stocks: GLD, SGOL