We did elect a Minor Daily Bearish Reversal at 1338 Tuesday but the key number is now at 1315. The highest closing on gold nearest futures was July 7th at 1362.10. We made the intraday high on Monday this week at 1376.50.
The Downtrend Line on a technical basis stands at 1363.33 for July. Once again, we still have no breakout. Our 1362 Monthly Bullish still stands and we have to wait for month-end for that to be elected. A failure warns of a retest of support.
In the written Gold Report the next Benchmark was given as the week of July 18th - next week. As we head into this target, the fact that we produce a low rather than a high is telling. This is a warning that we have not yet reversed gold into a bull market and the risk of still a decline into 2017 cannot be ruled out.
The key Daily Bearish Reversal moved lower from this week's high down to 1315.10. This is what we need to pay attention to right now. A daily closing below that will signal a retest of the 1263-1275 level. We have a key Daily Bearish still at 1206 and another at 1208. This is also now highlighted by technical support at 1214.03. Certainly, a weekly closing below that level would warn of a possible break to new lows under that of 2015's 1045.
While the world is falling apart, keep in mind that governments are fighting for their life. They have been trying to shut down gold in Europe for they realize it could be a means to transfer money out of banks if you fear even the euro.
For now, dollars look pretty good in Europe rather than euros. Just remember, governments cannot be trusted. Politicians are fighting tooth and nail to retain their lives of luxury and power. This is not that far off the mark from when Communism fell.
Eventually, gold will breakout. However, we cannot rule out one more thrust down to try to wipe out the free markets. All we can do is play by the arrows. Opinion is not going to mean very much right now. We are into some serious changes in the political-economy ahead and logic will fail with reason.
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