Now, the breadth numbers on the PM and XAU are not showing classic directional leadership at this point, but they have been stable enough now for the last 3 weeks to where the spot market can continue to climb in price. Canadian issues have also been strong of late, as well as, the Australian market where both have close ties to precious and semi precious metals mining. And least we not forget the recent downgrades in the mining stocks by Moody's on the 7/25 and, of course, the timely reverse split we recently saw in NUGT which always seems to happen right before important turning points.
So...it would now appear that the late June lows did indeed turn out to be our exhaustion lows having missed the Fibonacci target of $1156 by only $24.00 (less than 2%) in the price of gold, and the tradable bottom that we were looking for this month evidently came in with the August 6th shake out.
For now, let's look for the current rally to continue back up to the declining tops line seen on the chart at about the $1475 level, and hopefully by then, the internals will be in a much better position to support gold's effort to actually break above this line of negative influence with the first goal of challenging the $1800 level.
Fib
