There has been a lot of chest thumping and silver cheering on X and I would assume other venues. It’s gotten a little over the top, and you know what that means; a reaction is sure to follow at some point. That’s the gold (and especially silver) bugs.
But the technical situation is bullish. From a long-term standpoint, obviously. But also the daily chart of gold is still normal. Some TAs read multiple failed attempts at resistance as a negative (gold just failed for the 3rd time after the April 22 upside and reversal candle). But I lean toward the more times resistance is tested, the weaker it tends to become. In this case, especially since gold is in an Ascending Triangle, which is usually a continuation pattern.
So, unless gold fails the 50 day average at 3330 and the Triangle’s bottom trend line the situation remains bullish. If it were to fail, the next supports are shown.
Bottom Line
Positive: Daily and long-term technicals.
Negative: Sentiment is over-bullish, but has been that way for months upon months.
