With today’s move in gold we thought it appropriate to show our readers these two charts on Gold from Peter Degraaaf.
Featured is the weekly gold chart, with the US dollar at the top.The rising dotted lines in the gold chart coincide with falling dotted lines in the US dollar index chart.The long uptrend line supporting the dollar coincides with the latest correction in the gold price.The arrow in the dollar chart points to a possible breakdown below the rising trend-line in the dollar (once price drops below the arrow).In the event that this occurs, it is very likely to coincide with the gold price rising above the arrow in the gold chart.The supporting indicators at the bottom of the chart are turning positive.(Chart courtesy Stockcharts.com)
This chart courtesy 24hgold.com shows the amount of gold bullion at the COMEX that is registered and available for delivery, currently 935,000 ounces – the lowest amount in at least five years. Notice how the previous low in this chart in mid- 2011 (single dot), coincided with the gold price bottoming at $1500 and subsequently rising to $1915. The high point in this chart at the end of 2011 (two dots), coincided with the gold price topping out at $1915. “History does not always repeat, but it often rhymes“..Mark Twain.
Disclaimer:Please do your own due diligence.I am not responsible for your trading decisions.Investing involves risk.