What's Next For Gold

FX:XAUUSD   Gold / U.S. Dollar
70 0 0
Correlation between fear and gold             is pretty much intact. Besides when it's trading near 1000 it's obvious that it attract more buyers than usual. Because people thinking about bottom in gold             are also itching to jump in. So now what's next? Well it totally depends upon equity behaviour. Now it looks like S&P             could bounce upto 1950 / 2000 and that is going to put a ceiling on gold             bounce. In that scenario, next trip for gold             is obviously to 1160 or 1140. That's where things will be interesting because if stars align i.e. S&P             2000 and gold             1140/1150 then we need to observe how things work out from there. Another equity meltdown ( may be caused by another Fed hike during that time ! ) and gold             will get new life. Well that's too distance in future and we will revisit the trade at that time.
For now, every bounce is a sell until stocks starts to wither. Buying puts on bounce towards 1220 / 1230 makes sense targeting levels near 1180 first and 1160 next.
Comment: Yesterday's bounce was gave more than expected - opportunity to sell it at even higher level than we anticipated ( sold at 1230 and 1238 ). So now it is time to take profit on half position at current price - 1223 and move the stop for the rest of the position near 1232.
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out