"Hutch : Tell me truthfully, if you didn't know this was the XAU, you would say it's going up twenty points or more?
decisionpoint.com "
The plateu of the last few days makes me question the upward trend.
I'll do you one better. This is XOI, or OIL index.
decisionpoint.com
We all knew that OPEC was meeting, and were likely to lower prodcuction. But it wasn't until the day of the meeting before the XOI rose. So how far in advance of GOLD rising is the XAU suppose to rise? More to the point, if the XOI is tied to the commodity OIL, then ranges of XOI/OIL can be charted. But if a commodity is over valued such as OIL is now {since the event shouldn't effect prices immediatley} then maybe the XOI is ready to fall again?
But back to gold. Unless the POG climbs, the XAU will drag. So you ask:"if you didn't know this was the XAU, you would say it's going up twenty points or more?". Besides looking more into the TA, I'd have to say...
Based only on the CHART provided... I'd say that it's forming a second down trend channel, and a bounce onto the lower red line once more. But there is not sufficient amount of charting data to determine a real trend. But by including other data, such as US dollar index {which my fundamental suggests a correlation with}
decisionpoint.com
charts.quotewatch.com
I'd say the US dollar index may/is climbing, and as such may undermine or stabilize the XAU.
But knowing that it's also related to gold. I'd say it's at an upper trading range. But how many equities aren't trading at an over priced range these days?
PS: But what do I know, you're the Guru. |
