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Gold has now set a triple bottom at $1180.
Surprisingly its 3rd attempt basically failed as soon as it started.
It appears ammunition had run out with the spec market already circa 7M ounces short at the time & then US equity markets got thumped, again. Combine that with increased physical demand & we now have a gold price over $50 above the triple bottom.
Could it be re-tested? Definitely & I think gold needs to break above $1240 & hold for me to be convinced that isn't going back straight down again. The US equity market performance will probably have a lot to do with what happens next & we may well see another test, however if so, I suspect we will see the same result. i.e. gold holds.
I suspect the market at this point is still short speculatively, however obviously not to the same extent.
A break of $1240 I think would see the remaining shorts cover so we may see a considerable spike if this level is taken out.
