As of yesterday, Gold was up over $30/ounce on a combination of Russia/Ukraine fears and speculation that the ECB might announce an “inflation program” on Thursday morning:
Just overhead there lies a significant confluence zone between $1360-$1375, if price can get through this nest of resistance it could be a quick trip up to the low $1400s:
A deeper correction in equities and emerging market currencies could offer the perfect recipe to catalyze the next $50 of upside in gold. Yesterday morning’s large gap lower following Friday’s all-time high for the S&P 500, along with non-confirmation from the Dow Industrials, poses many more questions to the bullish equity faithful.
Was Friday a cleverly disguised bull trap? And will that 1929 Dow analog finally play out?….Albeit a few weeks late.