In looking back a week ago to “Gold’s Narrow Trade; Beware a Cascade”, prices since breaking away from such narrow trading range did come true — right on cue — and up price flew. As if it was foretold by the sybyl, here’s our updated view:
Such expansion of range was clearly due, but it was over direction that we did stew. Remember? “Up or down?” Gold was on a knife’s edge at this time a week back, then priced at 1314 right where the dip buying brigade had time and again saved the day, but with the technical picture inferring “down” as the way. And to be sure, Gold began the week en route to nearly test the year’s low (of 1304), reaching below 1307 pre-Fed decision. But then came the goods that give Gold the bids, all of which we can cluster together under the umbrella of the “U-word” — Uncertainty, such as to include:
And thus Gold posted its best weekly gain year-to-date by both points (+33) and percentage (+2.5%) in settling out the week yesterday (Friday) at 1347. That level is just 18 points below the year’s high so far of 1365, and 30 points away from Base Camp 1377, above which we expect the BSR (“Buy Stops Riot”) to further send Gold up to our conservative forecast high for this year at 1434. Need we say more?
