Gold tries to find a floor after a bruising drop last week
Gold is up 1% today or $22 to $2355.It's a decent rebound to start the week after heavy profit taking last Wednesday/Thursday. Technically, this was a damaging blow but on the daily chart, it's not as bad as the short term charts. It didn't even come close to testing the $2275 support level, let alone the old record highs in the $2075 zone.It's a reminder that this chart has gone super-nova in the March-May period and some profit taking was overdue. Overall though, I see the swift correction as a good sign. A bull market goes slowly up the escalator and corrects quickly on the elevator.Moreover, I think this image was as big of a threat to the dollar-denominated system as we will see in my lifetime:These are two superpowers saying they want to build a system out of reach of the US and you can't do that with US dollars. Both countries are increasing gold reserves and I don't see any reason why that will stop, particularly as the EU and US divvy up frozen Russian assets. This article was written by Adam Button at www.forexlive.com.
Gold is up 1% today or $22 to $2355.
It's a decent rebound to start the week after heavy profit taking last Wednesday/Thursday.
Technically, this was a damaging blow but on the daily chart, it's not as bad as the short term charts. It didn't even come close to testing the $2275 support level, let alone the old record highs in the $2075 zone.
It's a reminder that this chart has gone super-nova in the March-May period and some profit taking was overdue. Overall though, I see the swift correction as a good sign. A bull market goes slowly up the escalator and corrects quickly on the elevator.
Moreover, I think this image was as big of a threat to the dollar-denominated system as we will see in my lifetime:
These are two superpowers saying they want to build a system out of reach of the US and you can't do that with US dollars. Both countries are increasing gold reserves and I don't see any reason why that will stop, particularly as the EU and US divvy up frozen Russian assets. This article was written by Adam Button at www.forexlive.com.
