Technical Read: Today’s closing gold price is now at the approximate levels of the late May/ early June lows (support level). However, the downtrend is pretty solid and momentum readings are very bearish. I expect lower prices. One noted gold analyst I spoke to advised $1200 is not out of the question. I agree.
- Obama announced his strategy for dealing with ISIS (or ISIL with the “L” standing for Levant, a term for the Middle East area). The US president plans to use US airpower to degrade ISIS assets and form a coalition of partners, whom will provide ground fighters. This should probably viewed as a lessening of global risk as ISIS will now have cohesive resistance. Bearish for gold.
- (Long-term US Government Bond consulting is still available for hire). US Government bonds came under pressure again today. The trading uptrend has now been broken. This is bearish for gold.
GH Garrett – Veteran Commodity Watcher for Conquer the Mummy.com