Gold futures tested it all time high at the 1059 this morning around 815 CST where it was met with a healthy slap in the face, breaking a quick 14 bucks down to 1044.. We have since made what looks like a v-bottom on the 5 minute chart, and are currently looking at 1056 level.. 3 bucks off the highs…
Certainly the news sentiment is extremely bullish, so that to me is a wary point..I can’t remember anytime when people like Regis and Cathy Lee were right about anything other than the price of a first class ticket from NYC to Rome… Honestly, my opinion about ‘market commentators’ from any source is that they are one or two steps removed from carnival barkers.
Their job, remember is to make finance interesting and exciting, so people stay tuned during commercial breaks to see the adds for Cialas or Depends undergarments..
That being said, certainly it looks like gold is on a mission,, which most likely will see us pop above the round numbers like 1100, 1200…with resistance at those levels..
Ultimately how high will gold go? Its difficult to say because we are in virgin territory.. As at trader, though there will be lots of volatility to give opportunity to catch some moves.. Again, you don’t need to call the highs or lows to be successful, but if you can catch the meat of 2 or three 15 dollar gyrations, then its worth it to trade..
Of course if you are a long term bull, you might as well buy gold, take delivery, and just close your eyes and hope it goes to 3000… If you want to trade it, however, I would look for technical formations which give you highest percentage to scalp these 15 to 20 dollar moves.