We all know the story for gold. We all heard about it. Crazy estimates of 3000-5000 usd and even 10k usd price valuation. But after we hit over 2000 usd, price action went south really fast and nearly never corrected. Until it formed a double bottom recently. Bears cant go further and bulls started to win the fight. Now there is chance for a bull run. If price movement can close couple days above 50 day ema and previous support zone of 1756-1763, i do think we can be more optimistic about gold.
Also it is important to note that when summer arrives gold prices tend to go higher. This coupled with the fact that fed will not raise rates this year and they probably will not change their bond buying program can cause huge price increase in gold market. Also US bond rates does seem to chill a bit and this can lead gold price rise even more. Everything looks optimistic for gold price if it can close couple candlestick on daily chart around this 50 day ema area. If not we cant be too optimistic until it close above this area. After all market expect decrease in quentitive easing and increase in interest rates in the foreseeable future.
What you think about gold? Im heavily long in gold, at least for the short term, and want hear your idea!
You are not the only one heavily long, but I'm expecting pullback to begin soon, as current price action is overextended in short term. I think the bullion banks have made another "false" breakout to catch as many retail traders as they can heavily buying right now, which will act like bagholders later in the second half of the year, decelerating price uptrend.
thegreatwall38
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@goldenbug, thanks for your input. It make me think that i might be a bagholder and should watchout.
goldenbug
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@thegreatwall38, until you will not buy just after such days, you definitely wouldn't be bagholder. Just don't panic, be patient my friend. I'm also confused sometimes, because in my opinion, markets haven't been so manipulated in whole history as they are right now. I think one major correction can still occur on precious metals, in case of broader market dowturn and panic, which will be epic, because whole market can change direction at any time now. I think big boys have left the party and are waiting patiently in cash, but they will invest heavily into gold and miners once central banks steps in once again to "save" markets. Maybe their mission will fail in the near future and will only trigger parabolic run in gold price.
thegreatwall38
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@goldenbug, im not gonna lie, i would be so happy with a parabolic run!