D ecember Treasuries under Pressure amid Increased Appetite for Ris
December Treasury Bonds are trading lower as appetite for risk has sent investors away from so-called safer assets and back into the higher yielding stock indices and gold.
The current daily chart pattern appears to be forming a double-top against 135’19 and 135’12. Classic pattern watchers should note that the double-top formation will not be confirmed until 129’05 is violated.
Gold, Silver Appear to Be Waiting for Euro to Breakout to Upside
The weaker U.S. Dollar overnight has put December Gold in a position to rally further following a strong surge overnight to $1362.00. Although the rally stopped short of the recent main top at $1366.00, upside momentum seems to be building. Traders appear to be waiting for the Euro to take out its last main top at 1.4028 before attempting to push this market through the resistance.
Gold Chart Pattern Indicates Impending Volatility; Possible Top
December Gold traded in a tight and narrow range for the second day in a row indicating impending volatility.
Fundamentally, the slow down in the break in the U.S. Dollar has had a lot to do with trader indecision. Bullish traders have backed away from adding to their existing positions since Thursday when this market made a closing price reversal top.
Weekly December Gold closed higher for the week. Even though the market closed up on Friday, the closing price reversal top on Thursday is still in place, indicating a possible short-term top. While a change in trend is not indicated at this time, the closing price reversal top could be indicating the start of a substantial correction.