Can Gold Rally Hold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has broken out to the upside. The big question from here is can it hold? The answer is not an easy one but the simple fact that gold has been consolidating for months, continued to make higher lows and finally pushed through $1,220 suggest the answer is yes.
This is the time when traders and investors get confused about who and what they are. As a trader, if you are long gold as a trade, you should have an exit plane if the $1,220 level fails to hold. As an investor, you should have an exit plan if gold breaks below $1,180, the major support level.
Market participants must define who they are and what their expectations are. This all starts with a well-defined trading plan which should leave nothing to emotional interpretation. We think gold will continue to rally and will hold our investment position. Our trading position we will exit under $1,215, take the profit and run.