- Franklin Sanders, The Moneychanger
A Breach $1725 or $1540 Will Speed the Gold Price Along in the Direction of the BreakoutGold Price Close Today : 1,620.40
Gold Price Close 23-Sep : 1,637.70
Change : -17.30 or -1.1%
GOLD and SILVER are bewildered and indecisive. Yesterday gold fell 60 cents and silver rose 38.8c, today silver fell 43.1c to 3004.1c while gold rose $4.90 to $1,620.40. Gold's range was 1.75%, from 1634.15 to $1,606.93. Silver range was 5%, from 3116c to 2968.5c. Silver was jumpy and hard to trade, kept drifting below 3000c and hitting 10c air pockets.
The Gold Price did nothing today to resolve the ambiguity it left us in yesterday. Like a coil, its range is tightening and tightening, meaning selling pressure and buying pressure are about evenly matched here, but both are pushing with all their might. Like evenly match wrestlers (real wrestlers, not the TV masqueraders), one or the other will break the hold. Frankly, for the very short term, next week, it could go either way. A rally to $1,700 - $1,725 would not surprise me, but I still have to stand on my watchtower, looking for lower prices.
Here are the boundaries for gold: short term range is bounded by 1640 and 1580. Longer term, it's bounded by $1,675 (let's say $1,725 for genuine believability) and $1,540. A breach of those levels will speed it along in the direction of the breakout.
For the Silver Price, the boundaries are 3125c to 2900c short term, and 3350c and 2600c longer term.