All Eyes on Spot Gold

In the aftermath of the Fed-led, US dollar injection into the global financial system earlier today, all eyes should be on spot gold prices because a world awash in liquidity just became more awash in liquidity. If nothing else this should drive more flight to safety flow into the precious metals as a hedge against either a forthcoming bout of serious inflation or failure of the central banks to stem an apparently exacerbated credit (deflationary) squeeze.

In any case, let's watch gold carefully here to see if it can overcome key resistance along the Sep-Nov resistance line, now at $1763, which if hurdled should trigger upside continuation towards a retest of the September high at $1921.50.

Failure of gold -- and the SPDR Gold Shares (GLD) -- to do so will be cause for concern, and grounds for long liquidation that revisits key support at $1770/60 thereafter.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!