You could listen to all the "experts" who are now writing blogs about gold breaking support and what not. Or you could have listened to me back in May. This is when I started noticing the weakening of momentum in GOLD.
In my last post on Gold I suggested it could test its highs again. Today it made a new high so I thought I would take a look at the weekly chart to see if there are any warning signs of a stall or top. There are some negative divergences happening right now. I think the price is really going to have to blast off to work these divergences out. Short term traders may want to take some off up here or at least keep a real close eye on it. Long term trend is in tact.
Is Gold ready for a correction? Possibly. Previously I predicted a correction so I may be pushing my luck but I think there will be another one. Looking at the daily chart the momentum indicators are not keeping up with the price. Long term still looks good so no call of an ultimate top yet
I don't like the way gold keeps failing when it attempts to make a new high. Something just does not seem right.
Gold had a nice sell off today. It was down almost $44 or 3.5%. If you look at the GLD chart you can see that there was a lot of volume. If you consider this recent up move to be a false breakout for $GOLD we can test the lows from where the recent up leg started. That is around 1045. There are some support areas before it gets there but keep in mind typically when there is a false breakout it goes back to where it started.