After seeing Grant’s bearish posts on Gold, I felt tempted to share my daily Gold homework. I do not have an overarching long-term view on ‘the barbarous relic at the moment – but I watch it daily for a potential short-term upswing of, say, about $50. If I can catch a third of that upswing, I’d be very happy.

The Weekly has retreated from an overbought level (above the upper channel line) to below value. The Impulse system had turned from Red to Green, before reversing back to Red last week. It often trembles like that at important bottoms.

If Gold trades above $892 this coming week, the weekly Impulse will trurn from Red to Blue, permitting buying.

The daily chart appears to be drawing an A-B-C bottom which we saw in a multitude of stocks earlier this year. If gold continue t decline for a day or two, and then its MACD-Histogram ticks up, it will complete a bullish divergence and give a powerful buy signal. This is why I am watching Gold closely these days.

Many thanks to Grant and other Spikers and SpikeTrade Members for very thought-provoking comments!

Alex