Gold: Turning Short Term Bullish

We are turning back to bullish on gold after having turned bearish July 25th at the close (see calls here).  Gold ETF GLD is charging to its higher-downtrend. If it can hold at a close higher than that downtrend it will be an added confirmation of this bull move.

Here's The Chart

You have two trends, one from above coming down and one from below moving up.  One of them is going to break. For now the upside looks like it has momentum and can break that downtrend which would be bullish.

GLD ETF
Source: Interactive Brokers. Gold GLD ETF
Fundamental Factors Still Driving Gold

CPI has been low. The US Fed's favorite inflation indicator PCE-Price reports tomorrow morning. Inflation is working a little bit backwards on gold right now.  Low inflation means the Fed may be forced to hold back further rate hikes. That allows gold and inflation to rise down the road.

Elsewhere you have a tough war of words against China and North Korea from the US and aggressive actions from Russia against the US.

Geopolitical risk building usually helps gold prices.

Wrapping It Up

While we are still very bullish on equity markets, gold looks like it can continue to move higher.

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Disclaimer: Stocks reported by Elazar Advisors, LLC are guided by our daily, weekly and monthly methodologies. We have a daily overlay which changes more frequently which is reported to our premium members and could differ from the above report. Portions of this report may have been issued in advance to subscribers or clients. All investments have many risks and can lose principal in the short and long term. This article is for information purposes only. Ratings are based on hypothetical trade directions. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC and their related parties harmless. Any trading strategy can lose money and any investor should understand the risks.