Gold consolidating

Good evening traders,

Today, I have my all-time second post on Gold. The past few weeks Gold slid from above $1,700 to as low as the $1,640 region. Gold has been in this territory for quite a while after making all-time highs above $1,900. The consolidation gives us two important levels – $1,800 and $1,600, give and take several dollars. $1,700 has been sort of a “trigger level” for me the past months. When price got above that level, a short rally ensued (blue dotted lines below). I made some money off those small rallies. Now, price dropped quickly below $1,700 and now Gold is in a clear short-term downtrend. If I may suggest a reason for this, it is that money is coming out of this perceived safe haven and into the rallying equities. Given the support zone that is coming into play soon, I will be looking for short-term long opportunities. One thing that I do not like in the Gold chart – since I am a long-term (many years) bull – is that price is currently well below the 200-day MA. Nevertheless, I will be looking for short-term upside once Gold drops slightly further down closer to $1,600.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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