Since Gold fell out of bed on April 15th, and hitting 1321 the following day, the yellow metal has rebounded 61% (the Fibonacci retracement) to $1484 on Friday. Accordingly, there is a very good chance that gold should reverse this corrective pattern and take another swing at $1300 or points lower soon.
If gold goes above $1530, there is a very good chance that the selling phase should be over, although additional weakness is possible even if $1530 is breached to the upside.
For the record, I am long physical gold and am using futures and options on futures to hedge out this position. Long term, I am bullish on gold, but respect the idea that we are in a corrective phase for gold. I am new to using this site and regret that I have yet to figure out how to post a chart showing gold prices.
This message is not an offer or solicitation to buy or sell any securities or financial instruments, and is provided for informational purposes only. All prices data and other information are not warranted as to completeness or accuracy and are subject to change without notice. The author accepts no liability for any losses arising from reliance on the content of this message. The author may buy, sell or hold a position in the financial instruments mentioned therein.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I am long physical gold and short futures and call options on futures