Monday, 11 February 2019

Gold ($US/Oz)

This long term futures weekly chart (log scale) shows why some project a $700 correction target corresponding with [4]. The prospective continuation of the correction has been interrupted by a bounce of the RSI which has returned to the borderline of overbought without achieving a higher high. 

This daily chart of the $US spot price is more suitable. The extension of wave (2) has a more acceptable form. The negative divergence supports the view that minor wave 1 is concluding.
However, should the US Dollar weaken with momentum then the corrective waves of Intermediate wave (3) of Primary wave [1] can be small and of short duration, whilst the bullish action accelerates.
The link to the DXY chart appears below:

LINK:  DXY, US Dollar Index - weekly chart

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