Watching the Spot Gold Market Closely


Author Larry Berman

Posted: 17 June 2012 re-posted from etfcm

There is little doubt the world looks fragile. China is slowing, Europe is in recessions, the latest data in the US suggests slowing and all are looking to the central banks of the world for another jolt of adrenaline. Chatter is picking up that there is a bazooka like support coming for pan-European banks and euro debt.

We are watching the spot gold market very closely here, as it is pushing up against a declining trendline that has turned the rally back down in recent rally attempts. A close above $1642 likely points to a rally up to at least $1725. It probably happens into next week’s FOMC if the whispers are sniffing at the right type of central banks interventions. There should be enough juice to get the market to bounce here, but for the TSX it’s just a bounce, not likely the beginning of a new broad advance. Recent longs in most sectors should look to get out in the 11,800-12,000 range.

 

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