The following information arrived on my desk from a well respected source:
“Gold and silver turned in another poor monthly performance with losses of 4.5% and 4% respectively. Investors are wary of getting long the metals thanks to strong US economic data and lack of inflation. However, it’s important to point out that both metals are trading at price levels that make it very hard for miners to stay in business.”
But let’s look at Hawkeye Gold.
Chart 1 – Gold Monthly
The Gold Monthly Chart is in a down trend bias but in congestion.
Chart 2 – Gold Weekly
On the Gold Weekly Chart we are at a critical point. The price is hitting against the weekly stops which act as a support (indicated by the red arrow). Remember what W.D.Gann said – price usually goes through support resistance at the 4th attempt, if it does not hold it will be the commencement of weekly down trend.
Chart 3 – Gold Daily
The Gold Daily Chart is in a down trend. However, there are narrow bars on declining volume (indicated by the red arrow). This is usually the first sign of congestion and accumulation prior to a new up trend.
[Please note the red arrows are for illustration only and are not part of the software]
We are at the crossroads here. The Gold price needs to hold on the Weekly Chart, and then you will see the Hawkeye Volume indicator start showing some green volume bars as the majors start accumulating Gold at these low prices, before the trend runs up. But wait – Hawkeye will show where the smart money is.