Wednesday, 14 May 2014
Gold is currently constrained by the illustrated trend channel. Expect an eventual break in the same direction as the preceding trend (ie. down), but as always in trading be prepared for the opposite eventuality. Another interpretation is that Gold is forming a continuation Head and Shoulders (see chart).
In order to push to new record highs, the S&P 500 must first beat short term trend channel resistance. Until that happens, there is scope for a counter trend move.