$Gold Weekly

This week's gold price is causing some concern, though bearish sentiment has not been wiped out solely on the fact that the gold price doesn't advance. It hasn't declined either. At least not much anyway. The monthly chart favours a neutral to bearish outlook, which I believe is also reflected in the weekly chart.

I use the weekly chart to draw analogies between present price patterns and those seen in previous moves, some which have worked out, most of which were false.

There is a strong similarity in the position of the ADX Line with previous gold price moves out of a correction. Red arrows point out lows in the ADX line, not all of them are coming out of a correction. All of the bearish sentiment would have to be wrung out of this market before anticipating a breakout, even though we've clearly bottomed.

I believe that the zero volume day in the gold market corresponds to a price low at the close of the volatility smile derivative cornering all of the financial interest in the gold futures market, denoted by a vertical line.

A great deal depends on gold price moves for GBN.V shares, so this is of prime importance.

http://scharts.co/10DJLw5