Gold of course is in an even more interesting position just now. It is set up to resume its sustained fall ever since its all time high 1920.68 in 2011. And if you discount that by fibs as traders tend to do, you find penetration from the recent rise less than 50%, suggesting a downside objective in the current market is still a lot of way to go (certainly well below 1062 to justify its upside amplitude as a metal. Of course since we have big frames involved and these (such as MN) are rotating the variable from "dark space"(i.e. an area in which calls is completely speculative i.e. the end of a run or in this case high space) there will be a lot of ups and downs in Gold intraday, until a daily breakout to deepen the fall near-term (aiming for low space circa 1251. But for the week ahead it is clear that we must rotate from low space intraday to high space in order to promote such a possibility by something like circa 1390 - circa 1325.
Gold’s Relationship to the US Dollar, Chinese Renminbi Is Changing
Gold prices have been on a wild ride. Between 2000 and 2011, they rose from $280 to around $1,900 per ounce before falling back to $1,050 in 2015. Currently, they are trading close to $1,300 an ounce. Gold has made similar-sized moves when priced in the Chinese renminbi (CNH). From a CNH perspective, prices rose from 2,000 to 12,000 between 2001 and 2011 before falling back to 7,000 in 2015. Currently, it’s trading near 9,000 CNH (Figure 1). The similarity in performance reflects the stability of CNH versus the U.S. dollar, staying within about a 25 percent range during the past two decades.China’s economic ... (full story)