At the present time, sellers remain in control of the gold market as long as price remains below the triangle pattern. We continue to believe the gold market is correcting the entire bull market run from $35 dating to the 1970’s.
Short term, gold prices broke below the 50% retracement level of the bull move from $253 to $1923 and are now retesting former support now turned resistance. As of this week, commercial hedgers and professional speculators are short gold, while the only longs in the market are index funds. This type of market positioning can lead to short-covering rallies, but does not signify a market bottom.
Long term we are sellers of gold unless buyers can push prices upward first through $1088 and then $1200 on a monthly closing basis. The current price trend is still down with long term price targets of ~$975 and then ~$620.
Good Luck!
Short term, gold prices broke below the 50% retracement level of the bull move from $253 to $1923 and are now retesting former support now turned resistance. As of this week, commercial hedgers and professional speculators are short gold, while the only longs in the market are index funds. This type of market positioning can lead to short-covering rallies, but does not signify a market bottom.
Long term we are sellers of gold unless buyers can push prices upward first through $1088 and then $1200 on a monthly closing basis. The current price trend is still down with long term price targets of ~$975 and then ~$620.
Good Luck!
