Thought I would do my first post on here after having this account for months and not doing a thing, have to agree with lilpip here. Alot of Stops will be clustered around 1605-10 area so it would be in the Bull's interest to aim for that as it would leave 1625 area fairly open. The massive low test on the Weekly around a massive supportive area that when the top is broken will bring back in a huge number of longer term traders/investors and we could see $2000 by the end of summer. QE3 or any mention of or any developments in Iran with the US to suggest any conflict over the coming weeks or months will put this gold market on steroids and $3000 could be a very real target! But if the bottom of this low test on the weekly is broken it would run straight into $1500 which has been a seriously solid area. So I really don't want to be short this market at this present time. Even with Indian gold demand falling Gold is fairly seasonal and tends to pick up around now. Very interesting piece of information I have heard is atm it costs around $1400 to produce 1 ounce of Gold http://www.miningweekly.com/article/...lds-2012-05-17 So higher Gold prices are needed! Also have to keep in mind Gold way out performed other metals and currency against the US dollar this week and as Gold has been correlated with Eur/Usd you can see on the daily that Eur has made a fairly large Bullish engulfing candle around a massive area of Support. this suggest we will see dollar weakness over the coming week across the board. These's been a lot of talk about this next big leg in the Gold bull market for months and people don't want to miss it if this is the bottom. So be very weary if your a bear but stay to your trading plan.
You can rip apart my thoughts and analysis but that's my take on what's going on and going to happen. Good luck to all and have a top weekend!
You can rip apart my thoughts and analysis but that's my take on what's going on and going to happen. Good luck to all and have a top weekend!