Now Gold is extremely oversold on its daily and weekly chart. Sentiment is touching extreme pessimistic levels and is about to change to the positive starting in early July. On top tonight´s CoT-report should very likely show that the commercials have covered a significant part of their shorts which would result in a contrarian and therefore signal!
I don´t see much more downside for gold . Yesterday´s low at 1,246 USD has exactly touched the uptrend-line. Maybe it will take a couple more days until the bulls get the bounce started but prices below 1,240 USD remain very unlikely.
I think gold is a strong contrarian buy right here and now. We should at least get a strong bounce driven by a short squeeze in July which will take gold back towards 1,300 USD and its 200MA. If the formation indeed is in play, gold will continue to rally within the next three months (best cycle of the year) towards 1,365 USD.
I AM EXTREMELY FOR GOLD AND RECOMMEND TO GO LONG
Gold is on track. The bottom is in... the summer rally has started
I am Slightly Bearish.
We are in the strong downtrend for the past 3 weeks and I am expecting the danger of rebound is getting real.
If there is any rebound, it can travel up to 1269 to 1279 region.
If you want to short, wait at these levels (or) you can cautiously long toward these levels.
We use FOMC and it will impact on USD and gold.
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