Sunday, May 5, 2013

What's up with Gold?

Gold has had two decent weeks after the massacre in the first part of April.  However, the spot price seems snagged at the 50% Fibonacci retracement level from the highs prior to the vicious sell off.  It's the moment of truth for gold.  Either it punches thru the 50% and 61.8% levels or this was a "dead cat" bounce before a move lower.  The other consideration is that Gold is leading the entire commodity complex higher as the industrial metals and oil started coming back to life last week.  Still to early to tell whether this thesis is valid ...

(click on chart for larger image)