Nice Action in Gold!

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.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

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