Gold Forecast Outlook By Invest2Success
With the recent rally that started in Gold at $1046.20 low on December 03, 2015, this has now created a clear three wave A-B-C upward correction from the longer-term downward trend to recent prices based on weekly bars timeframe.
July 06, 2016 Gold Near Term High
The high on this up move is July 06, 2016 at $1375.53, which is a 38% retracement of the longer-term downtrend that started since the all time high of about 1900 plus in August of 2011.
Gold Weakness Now and the Gold Rally This Year
Currently the up move in gold is showing more weakness now. If the rally continues, prices could possibly reach $1434 to $1437, and possibly $1480 to $1500.
Gold 1300 and 1200 Key Support Areas
A close below 1300 would show a much weaker gold market with further decline potential. If gold 1200 support gives way the market could potentially see gold prices head much lower possibly below 1000 longer term.
Short-Term Gold Speculators
Large gold speculators are currently sitting with record net long positions. If and when these short-term gold traders start exiting their over-leveraged over-committed positions, gold could easily head much lower short term. The gold market is starting to see this happen now.
Short term the gold market could see a bounce to a new high just above 1375.53, but divergence indicators are warning of more price weakness is in the gold market now.
The bottom line support for gold is 1300 and 1200. A break of 1300 support suggest gold weakness short term. A break of 1200 suggests gold weakness longer term.
New Gold Positions
Taking new gold long positions right now is a high-risk low-reward bet. If you think gold 1200 support will be taken out, shorting gold right now can be a low-risk high-reward bet providing you use stop-loss in case it does head higher.
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