Well, here we are. Almost two weeks later, and the price of gold has dipped a bit from earlier this month. And it looks like that short-term decline is about to accelerate.<\/p>\n
Take a look at this daily chart of the price of gold\u2026
\n![](\"https:\/\/www.jeffclarktrader.com\/wp-content\/uploads\/2018\/03\/Screen-Shot-2018-03-16-at-09.54.21.png\")
<\/p>\n
There are a couple of bearish developments on this chart. First off, the action so far in 2018 has the look of a \u201cdescending triangle\u201d pattern. The pattern occurs when a stock bounces several times off of support, but each bounce forms a lower high. Most of the time, support eventually fails to hold and the stock breaks down.<\/p>\n
In this case, if gold breaks below support at about $1,305 an ounce, then look for a move down to the next support line near $1,290.<\/p>\n
The second bearish development on this chart is that the 9-day\u00a0exponential moving average<\/a> (the thin red line) has recently fallen below the 50-day\u00a0moving average<\/a> (the thin blue line). This \u201cbearish cross\u201d has led to a lower gold price the past three times it occurred in 2017.<\/p>\n None of this changes the longer-term bullish setup I wrote about earlier this month. In fact, we figured gold may be in for some short-term weakness. Here\u2019s what I wrote back then\u2026<\/p>\n There is room for gold to work slightly lower over the next few weeks. The price could decline to the rising support line at about $1,285 \u2013 which lines up well with the 50-week moving average.<\/p><\/blockquote>\n A short-term decline over the next week or two \u2013 perhaps in reaction to next week\u2019s Federal Open Market Committee (FOMC) announcement on interest rates \u2013 would allow this short-term bearish pattern on the daily chart to play out, while keeping intact the longer-term bullish ascending triangle pattern on the weekly chart<\/a>.<\/p>\n In other words, a quick decline in the price of gold \u2013 down to about the $1,290 level \u2013 would be an excellent buying opportunity for later this year.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Today, some thoughts on the gold market\u2026<\/p>\n After your Delta Direct post on gold and silver<\/a>, I sold all I had and you made the right call. Interesting to see how this plays out. I still think the metals will rally yet this year but it is a timing event.\u00a0Thanks Jeff.<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\nReader Mailbag<\/strong><\/h2>\n