Bullion Charts and Commentary
posted Feb 26, 2005 at 11:44AM
Conflicting signals. The MACD looks like it wants to move up enough to at least force a bear kiss, or if the bulls prevail a bullish cross.
A bear kiss suggests another brutal down leg. A bullish cross is very bullish, but is usually followed by a good dip...a dip that should be bought if past price action is any precedent.
A retrace and bounce off moving average or even the 200 support line would make a nice buy signal to hop on.
Actually I have little different to say that I haven't said over the last week. Gold is on short-term buy but dealing with important short-term resistance. The dollar is in a opposite condition.
The HUI/Gold ratio is still within the bounds of a triangle, indeed mid-way between main support and resistance.
As such I am loathe to make claims that a new uptrend has started or whether this is just a relief rally to unwind oversold conditions.
If someone pointed a gun to my head to force a prognostication I would suggest that next week will gold start to retrace a bit to find a new, hopefully higher support zone. Once that is done we will have a nice trend-line to work with.
Asian indexes still look good and that would indicate that the inflation friendly side of things shoul still hold the whip hand.