Chart of the day: Gold’s dull gleam

PUBLISHED : Sunday, 18 June, 2017, 5:36pm
UPDATED : Sunday, 18 June, 2017, 10:24pm

The perennially perpetuated myth that gold is a good store of value simply will not die. The reality is quite different and spot gold currently trades at one-third less than the record high of US$1,920 per ounce in 2011. We are clearly witnessing a correction to the massive bull run we had in the decade leading up to the peak and this month, once again, long-term trend-line resistance capped. We have formed a spike high on the weekly candlestick, though not nearly as dramatic as the one in November. Note also the prevalence of similar types of candles in the weeks leading up to the really big one. Though moving averages are not bearish, we feel the outlook is negative.

Nicole Elliott is a technical analyst