I have been advocating to buy Gold on all dips through my Twitter account (@theboringtrader). I am a firm believer that some portion of your investment has to be held in Gold at all times. Why? I won’t give you some flashy Wall Street Analyst reply. The fact is that there is a lot of uncertainty prevailing in the world today from North Korea to Afghanistan to Syria to Turkey to the US, all for different eco -political reasons. There is one thing you ought to know about the markets and that is they absolutely hate uncertainty of all kinds. When markets are faced with uncertainty, they sell off and Investors take safe haven in Gold. This has been happening since a long time and will continue to happen in the future too. Trust me, the worst is yet to come!!!
Now coming back to Gold, I had given a target of $1260 – $1270 on Gold when it was at the $1190 levels. Gold has super strong support around $1180 – $1190 levels. Gold looks bullish on the Daily and Weekly charts. The 38.2% retracement from the prior Minor swing high comes to around $1282 which would be the first target for all the longs. Expect some sort of profit booking at this level though.
Gold looks good to achieve $1340 levels from here on the upside. If it decisively closes above $1340, we cannot rule out a move towards $1435. However at this point in time a $1310 looks fairly achievable. On the downside, I see decent support around $1235 levels. Look for some bullish patterns here and go long.
As usual, the market will decide it’s course of action. All we need to do is follow what it does.
Gold trading levels for the next week are as follows
Buy Above 1260 Tgt 1 – 1280, Tgt 2 – 1294, Tgt 3 – 1314
Sell Below 1260 Tgt 1 – 1247, Tgt 2 – 1227, Tgt 3 – 1213
Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.
Have a Profitable Trading week ahead!
To your Boring Success!!!