Today in the general market we saw a decent bounce across the board - domestically and internationally off momentum from Friday. For the first time since our entire Gold run, I am neutral on the immediate (few days outlook) on Gold. However, if we re-test 1500 tonight I am very bullish again.
I hinted at the chance of 1500 and suspected if it dropped below 1500 there would be enough buyers to maintain a price level close to 1500. While it did drop a few dollars more than what I expected, it was certainly not near the 1440 that everyone was forecasting.
I visualize today as a point where bears had a strong chance to punish Gold and let it sink, however, there were indeed enough buyers to keep it close to 1500. I also noted that I do not see Gold dropping below 1484 and I still hold my view on this.
There are two possibilities that could happen: 1) Current price to 1485 tonight and/or tomorrow before a bounce eventually to 1540 fairly soon. 2) Current price to 1500 with a bounce eventually to 1540 fairly soon.
I am leaning towards option 2) as the market had an exceptional day and the bears failed to push it below 1495 on average. As such, watch to see if we re-test 1500 tonight. If we do, that would be a great chance to re-enter long.
In the long-term though (2020, 2021, 2022, 2023 and 2024) I am extremely bullish on Gold. Once we breach 1600 Gold will make huge moves. Currently its about finding the proper entries in the low 1500s as we are in now.
What about silver? I never see you post much about silver. Do you think silver will continue to pace itself with gold at typical historical ratios?
PaulDeep19131
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@coloradobarry, I don't post too much about Silver just because Silver follows Gold but at a slower pace initially so to avoid redundancy I don't talk about both too much. And Gold seems to be a more followed metallic of course.
I'm equally as bullish on Silver as Gold, but once Silver hits 17.50 I am more bullish on Silver (based on weight percentage ratio) from 17.50-26.00 than Gold at that same time period.
In the long run though I am more bullish on Gold just because of the monetary issues around the world like leading Gold to fly once we get to 1700.