October is the first month since May that gold has posted a monthly loss.
Initial resistance still begins near the $1720 - $1725 level. Above that, selling will show up near $1740.
The market remains rangebound with a bit of a near term friendly bias.
It remains below the 50 day moving average which comes in at $1737. That corresponds closely with the resistance level I noted above. To see the longer term bullish trend reassert itself, the market will need to convincingly close through this level.
Downside support still is holding firm near the $1700 level as bargain buying out of Asia is very solid here.
Can you see the significance of this $1800 level and why the bulls were unable to take it through there on this go around? Clearing $1800 and holding it, is the KEY TO THE RESUMPTION OF THE BULLISH TREND.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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