The Gold Price Breaks Below An Uptrend Line: How Are The Miners?

referring to >The price of gold last week dipped below a significant uptrend line. Take a look:> stockcharts.comThe shorter-term uptrend line — the one that connects the late 2016 low with the late 2017 low has been penetrated. That longer-term uptrend line — connecting the late 2015 low with the late 2016 low — remains intact but would seem to be the next target. Royal Gold — a NASDAQ-traded mining-related company — actually trades higher now than it did at the gold price peak in 2016. > stockcharts.comThe one gold mining company with a stock that has exceeded the 2016 high is IAmGold Corp., a New York Stock Exchange-listed equity.

Gold Price Forecast – Gold markets collapse on Friday

Gold markets broke down drastically during the trading session on Friday, slicing through an uptrend line that has extended from late 2016. I believe that any rally at this point has to be looked at with suspicion, especially if the US dollar continues to show signs of strength overall. Right now, I think that the market will probably extend down to the $1250 level over the longer-term. I believe that overall, this will be greatly influenced by monetary flows in the Forex world, so pay attention to US treasuries. I think that the market will continue to be very noisy, but I think selling the rallies will continue to pay going forward.

Big-pic Price Analysis – Gold Price, Crude Oil, DAX, S&P 500 & EURUSD

referring to Technical Highlights:Hot off the press - See the DailyFX Q3 Forecasts for our fundamental and technical viewpoints on major currencies and markets. Gold could be on verge of a strong move; crude oil, is there a top coming? Crude Oil Weekly Chart (2008 trend-line)For more in-depth analysis (fundamental/technical), check out the Q3 Forecast for Crude OilDAX & S&P 500 both nearing very important crossroadsThe DAX is in the process of carving out a massive head-and-shoulders pattern, with its beginnings extending back to June of last year. DAX Weekly Chart ('Head-and-shoulders')As discussed on Thursday, the U.S. market is dangerously close to driving off a cliff. (For more on why a 4th test of this particular confluent support is so important, see Thursday's S&P 500/Dow commentary).

Charts for Next Week – EUR/USD, GBP/USD, USD/JPY, Gold Price & More

EUR/USD descending wedge formingFor the past month the euro has been bouncing around off long-term support (top of the range from 2015/16), with each bounce so far becoming increasingly weaker. This has price bottled up into a descending wedge. EUR/USD Daily Chart (Descending wedge on big support)GBP/USD falling wedge on the buildGBP/USD has a pair of intermediate-term trend-lines which given their angle is creating a short-term falling wedge. GBP/USD Daily Chart (Falling wedge)USD/JPY symmetrical triangle nearing apexUSD/JPY has spent the past 5 weeks or so bobbling back and forth between trend-lines, forming a symmetrical triangle. USD/JPY Daily Chart (Symmetrical triangle)Gold is very near an important inflection pointAs we wrote this morning, gold is quickly closing in on a major trend-line test.

Gold Price Forecast: Stronger corrective rally likely

Short-term bullish reversal signs are seen in the gold daily and weekly chart. Weekly chartCurrently, gold is reporting marginal week-on-week gains at $1,255, having clocked a high and low of $1,261 and $1,238 earlier this week. That said, the daily chart indicates the metal is more likely than not to close above $1,261 next week. ViewThe metal could see a stronger rally towards $1,270 next week and could close above $1,261 next Friday, confirming a bull reversal on the weekly chart. On the downside, acceptance below $1,238 (Tuesday's low) would kill the probability of a stronger corrective rally and would shift risk in favor of a drop towards $1,200.

collected by :kiven Dixter