The inflation fear trade was reignited today after McDonald’s disappointed and existing home sales showed a 1.2 percent decline in June. Following the news, the price of gold climbed 3.17 percent.
Recent housing market and McDonald’s earnings news seems to have put an end to the market’s “taper tantrum” — at least temporarily. Even with today’s move in gold, however, the price of gold did not break above the 50-Day Exponential Moving Average (EMA). If the price can get above the EMA with any conviction, look for it to head toward the next area of resistance @ $1,425.00.
Note: Charting data provided courtesy of StockCharts.com.
Disclaimer: The content on this site is provided for general educational and informational purposes only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author and do not necessarily represent the opinions of sponsors or firms affiliated with the author. Any action taken by you as a result of information, analysis, or advertisement provided on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
