Two weeks ago in this space, I mentioned the $1850 level in gold had cleared the upside on a monthly closing basis and successfully back tested its breakout. The $1850 level at that time coincided with the upper boundary of the downtrend channel from its all-time high at $2089. Once the downtrend line at $1850 was cleared last month, the gold price appeared to break out of a symmetrical triangle to the upside.
All it took to run the stops below $1800 in gold was for the world’s largest central bank to go from “not even thinking about thinking about raising rates” to “thinking about thinking about raising rates” at the June FOMC meeting. Click here for full article.