As you can see from the chart above, gold has been trapped in about a $100 trading range for nearly half a year between $1,450 and $1,550 an ounce, with the exception of two brief periods – between the end of August/start of September and most recently, as gold spiked as high as $1,613 recently before being quickly driven back again. Today, gold has risen above $1,550 by a few dollars as I type this, but the key is gold remaining above this level. Gold has to remain above this level not to pull back in price more. If it descends back into the channel I’ve drawn above, the key question becomes, How much will price pull back? Will it pull back all the way to the $1,450 mark again or will the price pull back a lesser amount into the channel? I will address these questions further in the future, as well as provide more detailed analysis for my patrons, so stay tuned.
