
GOLD SOARS ON SHUTDOWN FEARS BUT PHYSICAL DEMAND WEAKENS, BUYING STOCKS FOR WINDOW DRESSING BUT REBALANCING AHEAD
By Nigam Arora
To gain an edge, this is what you need to know today.
Gold Soars
Please click here for a chart of gold ETF (GLD).
Note the following:
- The chart shows gold is soaring to a new high.
- The chart shows zone 1 (resistance) is the magnet.
- The chart shows zone 2 (support) is not far below.
- RSI on the chart shows gold is overbought and vulnerable to a pullback. More importantly, RSI is showing a divergence. A divergence often foretells a pullback unless there is macro news.
- Prudent investors should note the following:
- This leg up in gold is being primarily driven by investors new to gold.