Gold At A Crucial Point Now

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Gold At A Crucial Point Now

Last week we saw monthly Gold (GC) hitting a critical monthly trendline, as shown by the chart below. This trendline in Gold has been in place since 2011.

Historically, whenever Gold hits this trendline and fails to break it, the downtrend continues.

GC Monthly Chart

If we couple that with the US Dollar index (DX), the DX monthly chart below shows the current trend of weakness in the US Dollar.

However, we see this trend hitting support, with declining volume. If the DX were to continue lower, we need to see volume advancing, not declining.

DX Monthly Chart

Also, the Hawkeye Fatboy chart below shows that daily Gold is overbought and should start to lose strength, as it cycles back to fair value. This will be accelerated if the US Dollar starts to strengthen, and then Gold will begin to resume its longterm downtrend.

Hawkeye Fatboy

Looking at the daily Gold chart below, notice the volume weakness already beginning. Therefore, watch the daily GC chart for the current uptrend to be broken, with confirming selling volume.

GC Daily Chart

Hawkeye Perspective: Gold is at a critical point now, so watch for the daily Volume on Gold to see if strength or weakness will prevail during this time.

Remember, green buying volume shows strength, and red selling volume shows weakness. If the US Dollar starts to strengthen, this will accelerate the potential for a down move in Gold.


Join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.

Click this link for more information or to join us in class.

Learn to trade the Hawkeye way.

Randy Lindsey
Hawkeye Traders, LLC

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