If we have a look at the daily gold chart below we can see that there has been quite a nice selloff with gold over the last several weeks. Sometimes this is seasonal. However since Oct we sold off from 1800 all the way down to 1648.
This has now gone below the normal 50% retracement of the movement show on the daily gold chart below.
|daily gold chart|
Having a look at the gold index chart, we can see, there has been a rather large sell off, but we are very oversold, but there is no clear buy signal just yet on the weekly. So this is telling us to wait and to be patient. There were alot of traders who got into gold to early and now are regretting that move. There is a time to be aggressive and a time to be patient, right now is the time to just sit and wait. Patience is needed, because the next buying opportunity in gold might be a very very good one. :-)
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