Last week, we looked at the cyclical nature of gold prices (FOREX:XAUUSDO) and the fact that gold was potentially at a low in time. Today's upturn in prices may be the beginning of an up move that will push gold back up to the $1,380 level.
At the moment, gold seems to have very few friends and sometimes that is the best time to buy this market. After hitting a high of just over $1,900 an ounce in September of 2011, gold has slowly drifted to the downside. I believe that the $1,200 level is an important area of support for this precious metal and should not be overlooked.
You have heard me say many times before on this blog that perception in the market is everything. Right now, the perception is that gold is not going to go anywhere in a hurry. While it may turn out to be true, there are certain clues out there indicating that gold could rally $150-$200 from the most recent lows. I'm sure many of you can recall when gold was trading close to $1900 an ounce, the talk of $2,000 $2,500 was all the rage amongst the traders. Right now with gold on the defensive and people calling for the gold market to go to $1,000 or even $800 an ounce, it's just the reverse situation. Sometimes it's psychologically difficult to turn your thinking around and that's why MarketClub's Trade Triangles do so well by giving you an unbiased opinion of the market. Continue reading "Is This The Move In Gold You Don't Want To Miss?"
