The snp definitely failed to follow through on the upside. Whether this is a failed rally or another test cannot be determined. Possibly the market is on the hinge and the lack of selling would have to be considered bullish. Would not bet much on it however.
Like the dollar index, the gold market is speaking clearly. On 10/24 the market, after a sharp sell-off, had an outside key reversal day followed by a test the next day. An automatic rally ensued which resolved into a trading range between 10/31 and 11/11.
This was notable for the contraction of volume on two down days 11/3 and 11/7 showing supply drying up. This was followed by a 2 day spring 11/12 and 11/13. The latter being a reversal day. Support was evident 11/17-11/20 and a sign of strength followed with the high volume large range breakout 11/21. This breakout too was tested and resolved by the two day spring 12/05 and 12/08. Since then the rally has been almost 100 dollars without any serious reaction on the daily chart. We are now at resistance and have barely closed above it. This is a dangerous point, but there has been little negative in the chart so further upside can be anticipated. Again fund liquidation in gold seems to have ceased since 11/20 on the intraday chart. And we have moved up on relatively little buying. Tomorrow is the fomc meeting and interest rates will probably be even closer to zero. Why anyone would prefer their savings in a banking system run by inexperienced quants, liars, blackmailers and frauds rather than in gold bars is beyond me. I have never won dealing with sociopaths and I doubt you can either. Without knowing whether the future holds inflation, deflation or just chaos, the charts clearly tell us the likelihood is gold will rise.
