Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Gold responded to something today (or perhaps nothing), but the action is technically very bullish, especially monthly.
On a daily basis, gold held the $1280 to $1310 level then jumped higher today by $22.70 to $1344 for no apparent reason.
Regardless, the move was long overdue due to increasing deficits and other related issues including absurd proposals to waste $100 trillion on New Green Deals. Since the latter is years away, at least, I doubt that's the reason.
Regardless, there does not need to be a reason for today. Fundamentally gold is way undervalued. Today it rose.
Gold Weekly Chart
Gold is approaching resistance at $1377, $1362, $1369 and at $1393 as show in the monthly chart. I do not expect this resistance to hold, but it may take a while to bust through for purely technical reasons.
Gold Monthly Chart
There is multi-year resistance, dating to mid-2013, at $1393. Technically speaking, if gold can break through that resistance, there is little further resistance all the way to $1798.
I expect the action to play out that way.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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