Gold Silver Reports – The chart for Spot Gold is bearish on many counts. First there is the PMO with its “bear kiss” of the signal line and continued decline. The chart pattern that is forming is a bearish double-top. The pattern will be confirmed when price breaks down below the neckline.
The minimum downside target is calculated by taking the height of the pattern and extending from the neckline lower. In this case we can see that the target would put price between two areas of support at 1240 and 1260.
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I’ve also added the premium/discounts for PHYS. It’s a closed end fund so when investors purchase, they are getting it at a discount or premium depending on the price of the hard assets it is holding. I look at this as a way to measure Gold sentiment. It is considered bearish when you get deep discounts and given sentiment is contrarian, that would be good for Gold.
We’re just not getting the type of discounts we saw at the end of December so it’s just not bearish enough to start looking for a breakout above the last two tops. – Goldman Neal Bhai Reports
