Chart - TA, page-12

I have tried over the years to understand the relationship between the gold price and the economy or the equity market but the correlations flip from +ve to -ve depending upon conditions that sometimes do not make sense to me. Take for instance the current 3rd vaccine trial in 3 weeks with effective results all smashing gold price because it is great for the economic activity on recovery. I thought the basis of the gold=inflation hedge was one of the major drivers of gold momentum or was it the debasement of USD from QE infinity? The mind boggles as I am sure 'experts' are all crafting their reasons why gold is falling while equity is on a new bull run.

When I posted my chart last week, I was cautiously optimistic and yesterday we had a bit of price recovery off the Friday support 'bounce'. Price has now broken with conviction from such a large red candle and with a very bearish close way below the support I had marked.

$1820 is probably given measuring that bearish momentum and if that doesn't hold $1767. I can only refer back to 2011 to see how price action developed but for the time being there is a gold top forming. From a weekly perspective, there will be a bounce eventually and $1965 is where it needs to at least test to break the lower peak pattern.

I have decided to cancel adding to my position for the time being because the bearish selling has only just started today. The Oz XGD was front running the bear sentiment with the 3rd red weekly candle so I have to respect the ST momentum. Good luck to us all holding as March pandemic panic comes flooding back!