golden head and shoulders
Today’s external downside reversal in gold prices revives some concerns on the chart.
Gold appears to be forming a head-and-shoulders high over the past two months, in a move that would target $2,150. However, yesterday the bulls took action and attempted to take out the late May highs. This failed and today the sellers came back in force, pushing it down $40 to $2,318.
While this trend isn’t exactly textbook, it’s a head-and-shoulders high that comes after some data showing the U.S. services sector isn’t slowing down. In fact, S&P Global’s Services PMI reached its highest level in 26 months.
This could prevent the Fed from cutting rates this year and lead to aggressive profit-taking in gold.
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