Gold is correcting slightly from overbought, but light volume in SPDR Gold Shares (GLD) tells us this is just a pause.
The graph shows a strong pattern of higher highs, higher lows but storing energy to run at 200 ma (approximately 168). Furthermore, there is a bullish W pattern continuing to play out, the $175 target being a good one.
Even though inflation conditions are being ‘understated’ in the media, the data continues to show us that there is a lot of inflation around and even if it stops rising, the price level will remain. increase for a while.
The dollar is showing some weakness as yields have fallen at the long end of the curve, which tells us gold will be an alternative to these other asset classes.