Gold stabilizes after nonfarm payrolls; near record levels
Gold bulls are feeling pretty good right now.
Precious metals have been rising, the dollar has been soft and geopolitical tensions are causing investor concern.
But as I type, the price of gold is facing an important intermediate-term juncture.
In today’s chart, we look at the ratio of the price of gold to the U.S. dollar, which produces a similar pattern to gold priced in dollars. The ratio is currently testing the top of a 4-year rising channel this week at (1).
And earlier in the week, gold tried to break out above this channel resistance before reversing lower – see the long, tall wick.
Gold bulls are clearly hoping for a breakout this week, and not a bearish reversal pattern.
