Gold’s 30 percent parabolic move from July 1 to September 6 is beginning to falter. Maybe the yellow metal is just out of gas and needs to consolidate a little or maybe it’s something bigger, such as the liquidity issues in the European banking system.
Whatever the case, 1,793 needs to hold or the Fibs of the big move come into play. The 50 percent retracement at around 1,700 coincides with the August 25 low of 1,703 and is also where the river meets the waterfall. A close above 1,900 clears the path for the bulls. The battle is about to get very interesting. We’re flat and happy to be watching. Ladies and gentlemen, “let”s get ready to rumble!”
(click here if chart is not observable)