Gold bumps higher in overnight trading, tech analyst sees ‘bullish reversal patterns’
(USAGOLD – 4/6/2021) – Gold bumped higher in overnight trading in an attempt to establish firm footing above the $1682 double bottom. It got some help from a weaker dollar and tentative support for the bond market. The yellow metal is priced at $1737 – up $7 on the day. Silver is trading at $25.10 – up 16¢ on the day. The very identifiable double bottom on the current gold chart (See link) isn’t the only indicator that gold might be setting up for a trend reversal. Noted tech analyst Gary Wagner (Wagner Financial Corporation), who called the move from $1250 to $2200 in 2019 when others had written off the metal as having lost its safe haven appeal (See this post), points to another indicator that’s caught his eye. “While most analysts acknowledge that both gold and silver prices are in an oversold condition, up until yesterday,” he writes in a market update posted at FXEmpire, “we did not see any signs of a potential recovery. That is not the case currently. Yesterday we were able to identify not only Japanese candlestick patterns but other technical indicators as well, which are in confluence with the bullish reversal patterns….”
Chart of the Day
Chart courtesy of GoldChartsRUs • • • Click to enlarge
Chart note: You have probably seen the inflation-adjusted chart for gold in the past. This is the same chart only using Shadow Government Statistics’ rendition of the inflation rate. The SGS’ version of the inflation rate resurrects the same Bureau of Labor Statistics’ methodology used in the 1980s. Whereas the inflation-adjust price of gold in 1980 is about $3,000 on the standard chart (not shown), it is an astonishing $21,000 per ounce on this chart using SGS’ version of the inflation rate.