Alert double inside quarter on quarterly gold price chart

We are almost right into mid year. So that means 2 more quarters of price action for the gold market. Two more decisive price quarters. I have discovered a very important fact about the quarterly gold price chart. This is yet another clue in the quest to determine where gold will go next.

The Quarterly Gold Price Chart reveals a double inside quarter

Double Inside days are quite rare. A double inside day is when you have two consecutive price bars where the high of the price bar is lower than the previous bars high, AND the low of the price bar is higher than the previous price bars low. They are a little bit like symmetrical triangles but perhaps more powerful. They are especially rare on the longer term time frame charts. And so here we have the quarterly price bar chart of gold and we see that as we end June or the second quarter, we have a double inside quarter. This is clearly marked by the blue price bar as you can see in the chart above. This is only the second double inside quarter on a quarterly price basis going all the way back to 1970.

The first double inside quarter in 2001 vindicated itself and did show thereafter a big price move. The double inside day often leads to high volatility, but does not predict in what direction the volatility will manifest itself. So other clues are needed to help determine likely price direction. But the fact that we have a double inside quarter, a bullish yearly macd crossover as I alluded to in the previous posting, and we are currently hugging the long term resistance line leads me to believe this double inside quarter will have a bullish outcome.

The next posting will cover the most current shorter term price action on gold. If you have read the previous postings, you will have a pretty good long term perspective on the gold market.

But can anything be concluded about the near term?

Thomas.

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