Gold And Silver Directionless, Palladium And Aluminium Bullish

The following is an excerpt from Yamada’s latest monthly update for premium subscribers, released today. We highly recommend subscribing to the monthly in-depth analysis of Louise Yamada on http://www.lyadvisors.com.
Gold – Directionless Gold (GOLDS-1,287.81, see Figure 29) has weakened slightly since last month, slipping below both 50- and 200-day MAs, still confined in a year-plus symmetrical triangle. That formation rests midway between the wider trading range of 1,400 (1,420) and 1,300 as price has consolidated over a year.
There remains a series of lower highs all the way from the peak in price and continues within the past year’s trading. Now one might await a move through either resistance at 1,345 from July, or support at 1,242 from May to suggest which direction may provide a trade. The weekly momentum model is just turning negative (see lower arrow) suggesting there could be further weakness. The wider trading parameters above denote more structural intentions.
We reiterate that the support at 1,200 is also now the intersect with the very important level of the 2005 long-term uptrend, representing the bull market for Gold. A breach of this support / uptrend would bode ill for Gold and could suggest a further slip toward 1,150-1,000.

NOTE: The Market Vectors Gold Miners ETF (GDX) depicted herein last month has not been able to lift through resistance and has rolled over again despite the media excitement about gold stocks basing. Some have had good rallies and some of those may be rolling over again. Achieving 28-30 would be needed to lift through the consolidation and further through the 2011 downtrend.

This post was published at GoldSilverWorlds on September 1, 2014.