Gold Test Of Support Completed Successfully
The gold price has once again tested support successfully, the bulls showed up, the bears will be covering sending gold prices higher, and yes Jeff Gundlach is likely to see his $1500 gold target.
Previous post: Gold on the cliff verge
The gold bug websites have been screaming about massive physical demand, but yet price had not moved. Why is it moving now? Simply the selling has stopped, selling from $2000 to $1250 is done, the supply has dried up, exhausted. The gold market will now see profit taking by the shorts, and a few bulls jumping on the momentum trade. The long term trend will not be confirmed until it the price breaks above strong resistance at $1500, and is were the selling will start again. Gold massive test will be at $1500. Till then enjoy the run up.
Cycles have worked over the last 10 years (note the error in the blue text on the chart, the cycle is not a 10 yr period).
"It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind."
~ Jesse Livermore
"A market is the combined behavior of thousands of people responding to information, misinformation and whim"
~ Kenneth Chang
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