Gold is taking it on the chin this week. The U.S. Dollar is gaining strength and seems to be having an effect on GOLD and Silver's prices.
We've got a pretty good support floor around $1280. I'm going to watch if it holds. (Actually, I'm betting that it holds since I have a handful of JNUG puts that I sold. )
And hold she does! As of this Sunday night, gold is still above $1283 and flirting with $1300 again. Be aware that many gold forecasters are still predicting a "chance" that gold can drop down to $1000 per oz. sometime in the near future. Let's watch this one.
We've seen this picture before. Gold is indeed bouncing off of my trendline. A random event implies that it certainly could drop below 1280...but she's been respecting the support line since January 1, 2019. My current JNUG positions have been active as I've been writing puts when gold flirts with 1280/1290 and buying them back when gold shows strength.
Well, $GOLD has had a fantastic run up! I'm posting this now as a trading idea because it appears that Gold is losing energy. (At least for the short to mid-term.) I have positions that necessitate gold to trade around $1500. It appears I may have a short period of time to get defensive before gold wavers and heads back down to the low $1400's / high $1300's. (See longer term post and chart.)
Sorry if you are disappointed that my charts aren't littered with yogababble, but here you go. Simple geometrics and trend lines are my bread and butter. Caveat: Can gold break out from here? You bet. That's the outlier I'm watching for.