LONDON (Commodity Online): Gold is higher, bouncing after falling into a so-called technical retracement “box” where corrections often halt, said investor and newsletter writer Dennis Gartman.
Many commodities, including gold, fell sharply Monday but have bounced on Tuesday. In both dollar and euro terms gold fell into “the box” that marked the 50% to 62% retracement of the movement from $1,540 to $1,810 from late September into early November, and from 1,170 to 1,310 euros from mid-October through early November, Gartman pointed out.
“ ’The box’ so often ‘catches’ ” corrections as to be more than merely fascinating and certainly more than merely random in nature. However, why this is so is quite beyond our ken. We accept it as so; trade because it is so and move on, leaving the why’s and wherefore’s to others far wiser than we,”
Gartman concluded.
By Allen Sykora of Kitco News; asykora@kitco.com
