Gold Prices May Have Bottomed
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The action in gold suggests that it may have bottomed on Monday at $1,268. The fact that gold is basically holding the $1,280 level and has been on both sides of it for the last few days is a good indication. Gold is also seeing a rounding bottom, which suggests the lows could be in.
We will not call a bottom yet, but certainly the action is not as bearish as it was. We know that markets don’t announce their intentions, but we are starting to see evidence that new money buyers are stepping in.
We are looking for the $1,280 level to hold and to see gold consolidate at these levels for another few days, which would serve as confirmation the lows are in. For now, it’s too early to call the bottom but know based on the pattern that a rally could be coming. The best trade here is patience and observation.