Gold bulls are feeling pretty good right now.
Precious metals have been rising, the Dollar has been soft of late, and geopolitical tensions are causing investor concern.
But as I type this, the price of gold is facing an important intermediate-term juncture.
In today’s chart, we look at the ratio of the price of Gold to the US Dollar; this produces a similar pattern to Gold priced in Dollars. The ratio is currently testing the top of a 4-year rising channel this week at (1).
And earlier in the week, Gold tried to break out above this channel resistance before reversing lower – see the long, tall wick.
Gold bulls are clearly hoping for a breakout this week, and not a bearish reversal pattern!