In the short-term some caution may be warranted (or for those not long maybe a better level coming)
Other commodities and other markets (Yields and the USD) may also be signaling caution.
The overall target is still $2.500+ but in the near term there is a danger of Triple Momentum Divergence on the daily chart IF Gold does not bounce today.
I stress, at this point, this does not suggest that the trend is over, but rather we may have come a bit too far too fast.
In addition, for the 3rd day in a row it is struggling to close above the 12 April trend high at $2,431.52
How far could it correct? That is a work in progress right now and we do not yet have the moving average crossover at the close but likely at least towards $2,374-$2,378 and a chance of $2,277-2,291.
In the near term lightening up if not squaring up longs and stepping back looks a good idea.
Silver does not have the same setup BUT the Gold/Silver ratio has held very good support so far at 74.59 so there is a danger it could also be susceptible near-term.
Copper, in the near term is also back testing the breakout area of $490-501 having reached the minimum extended target of $514 but not (yet ) the extended target of $540-$545.... But right now (ST) there seems little rush to buy this either.
WTI never established a bullish break and still targets a move to $74 with interim support at $76.70-$76.79
In the background I am also watching yields and in particular the US 2-year yield IF it closed over 4.89%. That would be a clear short-term double bottom that would target a marginal new high in the move at 5.07%
All this also at a time when the recent period of USD weakness appears to be flagging
Not, at least in the short-term, an ideal setup for precious metals.
So is there a "New Kid On The Block To Buy". A new Commodity playing catchup??
Wheat still looks great with its double bottom target of around 760. But it is not a "macro" Commodity and most of you probably do not trade it.
But that's ok because there is another one brewing ....Aluminium (Or Aluminum in Yankee Land)
It is threatening to complete a double bottom above 2,696 (Weekly close) that would target as high as 3,300+ and also has good resistance from the April 2018 peak at 2,700. A weekly close above that 2,696-2,700 range would suggest that it could be "off to the races" and the next "New kid In Town"
