USD/PEN S/3.8985; EUR/USD $0.9894 BITCOIN $19361
GOLD $1667; USOIL 83.78
Gold is trading at $1671—19.5% below the 2075.48 Aug 01 high. Structurally, the drop below the 1676.85 low leaves the yellow metal potentially falling considerably lower.
Price is now well below the weekly 144/169 tunnel. Despite the monthly being above the tunnel, the weekly has dropped threw it and is now testing the upper part of the tunnel. All three now putting in negative values. Once the weekly and the monthly wave push through the 144/169 tunnel the metal could drop as low as the $1046 2015 low.
Volatility is up on the weekly. 14 ADX is ticking firmly to the downside at 24.26; and, the bulk of the volume for the last 30 weeks has just turned negative at -0.0317. 14 ATR is at 54.013 and above the 200 ATR!
Technically this is not a good look for gold. I expect the metal to fail soon and break below last week’s price.
Most are shocked gold is falling since the 2020 Pandemic high despite the dramatic rise in inflation. Just another example why technical analysis is a must when speculating financial instruments.