Gold — Rising or Stalling? Watch oil for further details!

Gold saw a significant increase yesterday similar to silver. The silver impact was reported here.  Gold today did not perform as well as yesterday, but still showed an increase to continue the bullish trend.   Looking at the daily:

Investors will notice the trend established clearly yesterday with the significant growth. The large variance in the bollinger bands is specifically because there was a clear trend. Today’s trend is more settled — albeit somewhat growth. Look at the hourly for a clearer picture.

Gold is showing a current trading position at 1228.645 with a support as low as 1224 and a resistance as high as 1235. Notice on the hourly it is hovering around the middle of the bands right now. This means that the precious metal is not continuing the bullish pattern from yesterday in the current frame but unknown in the mid and long term. Right now, it is what we would call a 50/50.

Are there other key indicators to tell if the metal will continue to be bullish? Plainly stated – YES. All commodities tend to rise and fall in unison — some more than others. Another commodity is silver. It is in the same position.

Junior traders might not be aware that the price of Gold is also positioned (as in bullish or bearish) with the price of oil. Look at this report to better understand. Investors should position their strategy for gold based largely on oil — If oil is up, then the price of gold is often (usually up). Today, the price of oil increase by approximately 1%. Therefore, we should see an increase in the price of gold, silver and other commodities.