Gold overtakes 1500 for the first time since 2013 now printing 1507. Those tight standard deviation bands squeeze out the big up move. Price has exploded above the upper band. Bigtime. Price will have to relax at some point and perform some backing and filling. Gold will likely remain in that 1480-1530 range for a week or few.
Keystone's 80/20 Rule says 8's lead to 2's so the move above 1480 opens the door to 1520. The chart is in negative divergence, and price is overextended above its moving averages and the upper band, requiring a mean reversion. Gold is in demand, however, as a safety play as the stock market is on shaky ground. Thus, additional buoyancy in the yellow metal would be expected. There are many willing buyers currently. Gold price has momentum.
A two-leg bull flag pattern played out. The first leg was from 1185 to 1350 which is 165 dollars. The sideways consolidation flag occurs with a downward bias, this is textbook chart behavior, and the second leg begins at 1270-ish. The target is 1435 which was achieved as well as a lot more. Gold and bitcoin are two winners during the multi-day pull-back in stocks. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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