Shelter From The Welter | The Gold Forecast

Shelter From The Welter

February 7, 2014 - 4:36pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Yesterday we issued an aggressive buy signal for gold. Today following the release of the most recent jobs report we issued a conservative buy signal for gold. At this point all traders who desired to take this trade should be positioned on the long side.

Aggressive traders bought gold at 1258

Conservative traders bought gold at 1266

A protective stop should be placed which sells gold below 1245.

Gold Market Forecast

As much as we were able to identify an absolute double bottom at 1181, we also looked at the real possibility that gold prices had broken above their long-standing resistance line. This week’s trading activity in some ways clarified our current model, but we certainly did not witness any breakout and sustained dynamic rally in gold. Rather what we have been witnessing has been a slow and methodical move to the upside as gold prices genuinely breakthrough various resistance levels. It is my current belief that we are building a base just above this resistance area and should see prices move higher. Of course next week we will have our new Fed chairperson give their first testimony to the Senate. With today’s softer than expected jobs report we wouldn’t expect any major changes in the Feds current tapering policy.

Sentiment Indicator: