Good Upside Potential here

Sep 30, 2020

The good news is that after this latest correction in gold no technical damage has been incurred. Gold is still well above its 200 DMA. In my opinion, the earlier overbought condition has now been completely unwound. Is this consolidation period over? I don't think so because seasonally October is traditionally the second weakest month of the year for gold. In looking at the ten-year chart for gold you can see a HUGE cup and handle formation, and in the process of forming the handle. I expect to see more consolidation in forming the handle and more sideways movement. The Silver chart looks good here too with plenty of upside potential. What about the dollar? This current rally in the dollar looks more like a short-covering relief rally to me than anything. Could it continue higher? Sure, depending on what the fed does and how this election winds up, but the overall trend here is lower and regardless of who wins in my opinion, more of the same is to come. The fed is highly accommodative and so too will a Democrat administration, the printing will continue and rates will remain low for some time. In my opinion, though yours may be different, the overall trend in gold is higher and I'm looking to pick up shares anytime we get close to $6. Good luck!