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May 12, 2005
Gold Break Down
Despite strength in the US Dollar Index, gold is holding up rather well. However, XAU is not so lucky and remains relatively weak. GLD broke the lower trendline of the symmetrical triangle, but is holding support just above 42 for now. Given strength in the US Dollar Index and relative weakness in XAU, the odds favor a break to the downside. In an effort to avoid the whipsaw, traders can turn bullish on a move above 44 and bearish on a move below 42.
Posted by Arthur B. Hill at May 12, 2005 04:43 PM