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
Chart courtesy of TradingView.com • • • Click to enlarge
Chart note: This chart shows the developing inverted head and shoulders pattern Chris Vermeulen describes in today’s DMR above.