Abigail Doolittle, of Peak Theories Research, shares her latest updated short-term outlook on the price of gold. Doolittle's conclusion: "Caution is advised around gold in the near- to intermediate-term due to this potential near- to intermediate-term reversal. In the long-term, however, gold’s primary and bullish uptrend appears to remain very much in place." Of course, for those who day trade gold, the broken upward channel we pointed out some time ago was the indicator to watch in taking profits. For everyone else, who believes that the past two weeks' weakness is merely a blip in an otherwise relentless march by the world's central banks to reflate their problems through currency printing and devaluation, the long-term outlook is certainly far more important.
- With gold below $1,353 per ounce, it appears to have begun a nascent trend of lower highs and lower lows or the topping process that I’ve been writing about.
- This suggests that gold may continue to move down and especially with gold slightly below its 100 DMA of about $1,347 per ounce.
- In turn, this may suggest that gold will fulfill its small Bear Flag with a target of about $1,330 per ounce and even the Diamond Top pattern with a target of about $1,284 per ounce.
- If gold hits that target of $1,284 per ounce, there is a good chance gold will retrace the entire ascent leading to the Diamond Top or decline to about $1,155 per ounce.
- Such a decline would be consistent with a pull down to gold’s long-term trendline which, ironically, will strengthen this long-term uptrend.
- Caution is advised around gold in the near- to intermediate-term due to this potential near- to intermediate-term reversal.
- In the long-term, however, gold’s primary and bullish uptrend appears to remain very much in place.