Gold might be in a wedge (but testing big support ahead of NFPs)

1 בספט׳ 2016

Gold on the daily log scale is in an interesting spot right now. Support at $1300-05 has been tested (note the trend line on the daily log chart). While there seems to be some sort of wedge that has taken shape since the start of the year on my chart, I'm not in a bearish mindset as of yet, unless if $1300 is breached following the NFPs Friday. So long as the market remains above $1300, it may be assumed that gold could bounce back up to around the $1350-60 area in September with perhaps room for fresh highs up to $1380 if the US dollar comes under sustained pressure. Do check my note on silver below as that metal has also tested a major support level.