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.
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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