Gold back in the news with many now questioning whether the recent bull run in the precious metal has come to an end. This is typical knee jerk reaction as a potential sell off in gold was signalled on both the daily and monthly charts. The daily spot gold chart has been forming a double top since the beginning of September and the gold price only needed a nudge from the CME raising margin requirements and the flight back into the dollar to tip the price lower. The monthly chart was even more interesting as August and September were happily forming a two bar reversal.
The focus is now firmly on the weekly chart where in two days gold has shot up over $130 per ounce rising from a low of $1532 to trade at time of writing at $1663 and, as a result, forming a deep hammer candle. The key issue for gold this week is whether the US dollar can hold onto its recent gains as any return to weakness should prove positive for the price of spot gold.