Gold Appears to be at Equilibrium

• Posted by Robert Sinn
• on June 20th, 2012

Gold ($GC_F $GLD) may have carved out a new equilibrium range in today’s session with 1590 acting as support on the downside and 1620 offering resistance on the upside:

Click to enlarge (notes on chart)

The CBOE Gold Volatility Index ($GVZ) has also pulled back from its recent highs over the last several days as investors believe that gold will trade within a narrower range:

 

As we learned in May the longer price remains rangebound and implied volatility continues to contract the more likely a violent breakout to either side becomes.

For those interested in learning virtually everything there is to know about gold check out: “The Golden Dilemma”

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