Since we last wrote about the SPDR Gold ETF (symbol GLD) in March, the Elliott wave pattern has come into focus. Gold price targets for the wave higher have been met and a move lower (or price correction) may be in process.
The summer trading pattern continues with the US equity markets choppy with an upward bias. I see know reason to think that it does not continue until at least Friday when Yellen gives a speech. Another event to look for is the next NFP which is on September 2nd.
Equity future are trading up overnight which is in line with expectations of a modest rise in the equity markets. Crude slightly lower which is also on track with forecast. DX is stabilizing after falling lower much of this month.
The next move should be lower but the larger picture is still open for interpretation. Either the pullback is a rest in a new bull market or part of a more complex formation that in the long run leads to a new low before a new bull market in metals begin.
Very slow economic news day to start the week with. People should start returning from their summer holidays this week preparing kids for school. Traders will not be fully returned with their head in the game till after September 6th.