As anticipated in our previous analysis, Gold has reached very strong resistance in the area of 1830-1840 dollars.
This is the area that, if broken, could bring to a strong upmove of gold vs other asset classes.
We signal that the next 2 resistances could be 1876 and then 1924 dollars.
But due to high volatility of this asset, we recommend to buy (or increase longs) only at breaking of 1840 dollars.
In the chart below, we analyze the spread between Gold and Eurostoxx index: this spread is still in favour of European Equities vs Gold, but apparently is bottomish and can try to break upward in favour of Gold (i.e. long Gold, Short European Equities).
We will signal in due time any breaking and therefore a buying signal.
Also in this case, the breaking could have very strong relative performance of Gold vs Equities.