It does appear that 738-740 is serving as heavy resistance for now. I have been anticipating a pullback into late October per my earlier posts. This is not unusual as the seasonals for gold are usually somewhat bearish around this time of the year (end of Sept. until last week in October). We could see a test back down to 690-710 range as the new floor before moving higher. I will continue to watch for basing/consolidating action in the price before November begins. This next up leg is only getting started imo however the gold price should consolidate first before moving much higher...
December Gold (GCZ7)
- Thread starter Realist
- Start date
From the looks of things right now, gold could still move higher before a pullback commences. Tonight, the dollar is trading right near historical lows with crude trading up near historical highs. Gold is hitting 738 right now so we could see a push higher before going lower. 750-780 could come first...
sorry - i didn't explain myself..not my prediction at all. i have no idea what it will do short term. i like gold long - it just has a nasty habit of tanking hard and fast to correct... the dollar has literally been dripping down every day, oil busting highs, real estate market tanking, bond market collapsing. personally i dont think we've seen much of a move in gold considering... and say the dollar bounces - which it will ... i wouldnt be surprised to see a violent correction (especially because its in the u.s's interest to keep gold down to maintain calm and protect their large short positions.
I am rather disappointed in golds performance recently given the fact the USDX has broken below 78. Knowing the metals market helps to understand that gold is under performing due to price suppression by the commercial interests which is not uncommon. The precious metals market is a relatively small market and can be controlled easier than other markets. If one has a look at the latest COT data, then traders can see for themselves that the commercial short position is very very large now. This type of action is almost always precluded by a takedown in the price. As a result I am out of gold for now and will be looking to reestablish new positions once prices have pulled back to 690-710 region. This area is where I expect the commercials to cover their positions in dramatic fashion. So in essence, with the Euro hitting on all cylinders and looking very overbot alongside with crude oil, I would expect a bounce in the USDX soon...