Inverse head and shoulders on gold
Another up day for gold and what appears to be the formation of an inverse head and shoulders on gold, with a break and close above the 1267.90 resistance and 200 day exponential moving average, hinting at further upside for the pair. Above there is the 38.2% fib for the move from 1433 to 1182. For me the next major resistance would come in at 1362.
I personally feel gold only holds value in time of loosening monetary policy and prefer fading into shorts rather then going counter trend for as long as the US recovery is intact, should last weeks non farm payrolls be the start of further poor data from the US expect gold to push higher.
On a side note there has also been talk of a merger in the sector, with Goldcorp putting in a bid for Osisko mining.
