No.
Yes, it has softened in September but there is little support for gold, except for those those that have a vested interest - who will talk it up.
September is the short-term picture but with any stock, commodity or currency it is always important to look at the short, medium and long-term outlook.
Whether you are technical analyst or fundamental follower, a chart is a picture and speaks a ‘thousand words’
So, let’s look at the daily, weekly and monthly perspectives:
Daily:
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Weekly:
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Monthly:
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Each tells a different story.
If you are a trader you may like to use the daily outlook to do a short-term trade – that there may be a small correction upwards. But that’s all it will be.
The weekly says there has not been a lot of interest over the last 3-4 years.
If you are a long-term player the monthly says that, if anything, gold could ease to ten-year lows over the next couple of years.
I am not saying it will fall out of bed overnight. It takes time for long term outlooks to unfold. And along the way we can see rallies.
Enjoy the ride
Tom Scollon
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