Gold Base-Building Could Take Time

Source:

"Comex December gold futures are weaker Monday as the market continues volatile action following last week's sharp downside correction."

Kitco

Comex December gold futures are weaker Monday as the market continues volatile action following last week's sharp downside correction. The sell-off low on Aug. 25 at $1,705.40 for December futures etched a "hammer" bottom on the daily chart, which could mark the lower end of a sideways consolidation zone over the next several weeks as the market builds a base.

The recent correction has not harmed the overall longer-term bull trend, which remains intact.

The quick correction lower last week, saw December gold plunge from $1,917.90 to $1,705.40, over a mere three sessions. However, during that sell-off the market did not close below middle Bollinger band line support, a positive technical signal, which reinforces that the retreat was merely corrective. . .View full article

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe