Weekly Gold -- Time for a Bounce?

The Fed has entered a "quiet period" before its next meeting, and gold seems to be going along for the ride. Here's an updated chart. 


(Updated chart)

If this channel holds true, gold is primed for a bounce. Potentially a big one.

Other stories of interest ...

ETFs backed by gold account for just 3% of the $3.21 trillion of assets held by investors.

The Fed is in a quiet period, but their agents can still massage the market. Wall Street Journal's Hilsentrath: Divided Federal Reserve is inclined to stand pat http://on.wsj.com/2cRYKiy


Still, we should notice that bond rates are rising. If this correction to the big declining trend turns into a real rally (a big "if"), as gold investors, we have to be honest with ourselves. That could smack gold on the nose, at least temporarily.

China is in a new home-buying boom. Potentially good for commodities.

On the other hand, IEA cuts global oil demand forecast amid ‘wobbling’ Asian demand: http://on.wsj.com/2cSEXQ2 

Oil Bankruptcies Leave Lenders With ‘Catastrophic’ Recovery Rate, according to Moody's. 21% Recovery rate. Ouch.

Wars in Iraq, Afghanistan cost almost $5 trillion ... so far. Man, what could we do with $5 Trillion?