Final chart of the day once again focuses on commodity prices, and in particular Gold. Despite awful performance, oversold price and persistent bearish sentiment – I believe that Gold prices have not yet bottomed. In my opinion, the current price action isn’t a “basing formation” like many bloggers claim.
Chart Of The Day: Gold’s low volatility could be gearing for a big move!
Source: Short Side of Long
More likely, it is a continuation pattern, which could lead to a breakdown and a final capitulation. Gold could be in trouble if it breaks and closes below $1,180 area, while Silver would also be in trouble below $16.50. Let us remember that speculators hold very high bets on Silver, which we discussed in last weeks post.