Gold Rally Sizzle Fizzles

Ah, alliteration. Gold rally sizzle fizzles. So, it looks like the gold price moon launch scheduled for today has been temporarily delayed.

Honestly, that moon launch has been sitting on the launch pad ever since precious metals came back down to earth back in 2011.

Don't get me wrong, I strongly believe it's a wise idea to own some physical gold and silver.

Just don't listen to the hype and hustle.

Funny too, despite the much ballyhooed stock apocalypse of 2015 that all of the cool kids are talking about, gold has been unable to crack through the important $1,235.30 (0.50 Fib Retracement) level.

Technicals are funny things. In the chart above the gold price has reached the extreme overbought Hurst Bands. It got a little above the extreme upper band and the price fell. Of course, that's how these fancy technical chart analysis tools are supposed to work.

For some reason, technical indicators don't seem to care how many stories are written about how much gold the Chinese have purchased or how imminent the death of the dollar is. There's a reason they call them stories I suppose, they're tales told to ourselves to lull us back to our sweet dreams of $2,000.00, $5,000.00, $7,000.00, $10,000.00 - heck, $50,000.00 per ounce gold. Let's just see if $1,250.00 or $1,300.00 is in the cards shall we? We shouldn't get ahead of ourselves.

It's darned well impossible to get those much promised gold moonshot prices without big gold volume. If you look toward the right-hand side of the above chart, you won't see spectacular volume as of late. That means big buyers aren't committed to taking any positions currently. Without big speculative buyers (sorry speculator haters) you don't get big moves in the gold price. That's the way it works in stocks (sorry stock haters). It's the way it works in pretty much all of your big markets. Gold isn't magical. There is a market for it and big buyers push the price around.

It's hard to launch a moon rocket from the inside of a box...

The gold price has been boxed up within a channel since September of 2014. The top of the channel is around $1,243.70 and the bottom is about $1,130.40. That's not too coincidentally close to where the Hurst Bands in the above charts extreme upper and lower bands indicate as well. So, it's a bit like a box inside a box. Go ahead, launch a rocket inside two boxes.

But wait, since everyone who loves gold seems to love China, make it Chinese Boxes...

Let's launch the gold moon rocket from a box within a box within a box. Why not? The above chart shows a pivot chart of the gold price.

Today's gold price is being held down by not one, but three pivot points. Something about trinities today huh? Anyhow, you can't see the pivot points clearly because they are right on top of each other - it's the blob right above the last candle on the chart. The closer the pivot points are together, the harder it is to break through the resistance.

Three of them on top of each other will be tough to break through. Right at $1,243.50 is the daily upper price pivot (it's beige colored). Funny how that daily price pivot matches up with the horizontal resistance line drawn on the chart plus the upper extreme Hurst Band, but this technical analysis stuff is just voodoo - I wouldn't pay any attention to it.

Surely the gold moon rocket will be lit soon and burst through the Chinese boxes soon. At least that's what so many of the happy gold hype sites say. After all, all of the gold is being moved from west to east, perhaps in Chinese boxes?

Bottom Line: You can believe who you want to believe when it comes to gold. I did suggest curbing your enthusiasm for a pending gold price launch yesterday. But hey, I'm just some guy with a blog. Perhaps some nice men from the Chinese government will come knocking on your door and offer to buy your gold stash for $10,000.00 per ounce.

Bonus: Surely this time the gold rocket will go straight to the moon: