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Commodity Chart Of The Day

Daily Gold

(click image to enlarge)

Gold has gained 10% in the last two months, but in the short run, I do not see prices able to maintain levels near $1700. As you can see from the chart, we've completed a 61.8% Fibonacci retracement around that level in the December contract.

Though I am bullish in the coming months, I think in the coming days to weeks, we see prices correct lower. Use the Fibonacci levels as your exit targets on any bearish plays. As one can see, prices on this contract can trade back to $1615/ounce without doing any near term chart damage.

I would be an aggressive buyer for clients given the opportunity to be a buyer on a 4-6% correction, as I do see prices above $2000/ounce into next year.

Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Source: Commodity Chart Of The Day: Gold