Gold Prices Hold Support Again
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After making a low at $1,204 in July, gold has been in a nice uptrend, trading as high as $1,362. In the last 15 to 20 days, gold has been in a minor downtrend; however, support has held on every sell-off. On Thursday gold was tested, trading down to $1,280 only to bounce back and hold that major support level.
The action in gold suggests that the uptrend will continue. There will be attempts to sell, but the big picture looks like support should be bought. The gold trade is consistent with a market changing from the five-year bear market into a new bull market.
All markets trade in different phases; bull and bear markets don’t start overnight. Markets build through three major phases and depending on the time frame you are trading, you will see different phases. On a monthly chart, gold looks great and is on schedule to test $1,400.