Gold is showing signs of life, up $12 to $1275
Gold is up 20% this year but it sure doesn't fell that way. The gains came in two six-week bursts at the start of the year and then again in June/July after the Brexit vote.
Since then gold has been sluggish or slumping.
Today's $12 gain, however, is the largest in a month and may awaken the gold bulls.
It's still early days but the close today is likely to be the best since Oct 3 and the gap down on Oct 4 is vulnerable. First, gold will need to clear the Oct 5 high of $1277 and the 38.2% retracement of the Sept-Oct fall, which is at $1280.50.
If it can get above those levels, I anticipate a return and test of $1300 or the Sept low of $1305. That's not enough to break out of the sideways consolidation but it's tradeable.
From the fundamental side, the election uncertainty and high likelihood that the Fed stays on hold next week are positives.
