by Stewart Thomson, GoldSeek:
1. The FOMC minutes release tomorrow should bring some short term weakness to global gold prices, but I expect many individual gold and silver stocks to continue their strong rallies.
2. Please click here now. That’s the daily gold chart. After bursting upside from a small symmetrical triangle pattern, gold has rallied to about $1122.
3. The 14,7,7 series Stochastics oscillator is overbought now. Gold enthusiasts should cheer for higher prices, but be open to the possibility that a small and sharp correction could start now.
4. A pullback to the triangle apex in the $1090 area is not just possible but likely, but the longer term charts suggest gold has started a major upside rally.
5. Please click here now. That’s the weekly gold chart. In the big picture, gold has essentially been in a drifting rectangular pattern, with a slight downside bias.
6. Note the superb position of the 14,3,3 series Stochastics oscillator. Sizable rallies ($150 – $250) often follow set-ups like the one that is currently in play.
7. While FOMC-linked short term weakness is likely, the August – December time frame is typically gold’s strongest part of the year, particularly if the monsoon rains in India are good.
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