Gold: Consolidation is calling for more upside

10 Jul

Gold has slowed down in the last few months espeically since China announced they didnt buy any gold back in May. But from sentiment perspective, retracement has been expected as we saw a market in the fifth wave of an extended wave 3 after breaking to new ATH. Well, what we see now is then a corrective pause which can be coming to an end here in wave 4 as price breaks above 2370, and even touches 2387 levels. So ideally, thats a bullish triangle, possibly already finished, so be aware of more upside after current subwave two retracement.

Alternatively, even if thats wave (D) of an even longer and more complex triangle, there will be expected more gains after wave E.

Support on dips are at 2320-2340.

Keep an eye on US inflation figures tomorrow. If inflation softens, dollar can drop, gold will rally. If inflation is hot, and even if gold drops, I think gold can stabilize soon as metals and commodities can be seen as an inflation hedge.

Grega