Gold marginally higher ahead of tomorrow’s consumer price report
Price muddle a mystery amidst unexpected economic headwinds, strong Asian demand 

(USAGOLD –9/13/2021) – Gold is marginally higher in quiet trading ahead of tomorrow’s consumer price report. It is up $2.50 in early trading at $1791. Silver is down 8¢ at $23.72. The yellow metal’s stubborn rangebound price behavior has been something of a mystery among analysts, given reports of strong physical demand out of Asia and the unexpected headwinds building in the economy. Technical Traders’ Chris Vermeulen sees a developing pattern on the gold chart, though, that signals things might be about to change.

“After a moderately strong rebound from the $1675 lows in early August,” he writes, “gold has clearly started to set up the Right Shoulder of what appears to be an Inverted Head-and-Shoulders pattern. The recent weakness in the US Dollar suggests any breakdown in the US Dollar below $91.70 will likely prompt a new bullish price advance in Gold targeting highs above $1900 and likely attempt to reach $2100 or higher. … We believe the $91.70 level on the US Dollar is critical to the setup of the Inverted Head-and-Shoulders pattern in Gold and that Gold may trail downward to levels near $1775 before finding real support for the next upside price rally.”

Chart of the Day

Gold Price

gold bar chart showing developing head and shoulder pattern per Vermeulen analysis

Chart courtesy of • • • Click to enlarge

Chart note: This chart shows the developing inverted head and shoulders pattern Chris Vermeulen describes in today’s DMR above.

This entry was posted in Daily Market Report, dailyquotes, Today's top gold news and opinion. Bookmark the permalink.