$1,750 marks a 75 dollar an ounce rally in the past month. The October high nudged $1,800 then we dropped 125 bucks an ounce in 5 weeks… For you total return folks, that’s a 7% loss in value, followed by a 4% bounce back. We’re still down 3% in a sideways choppy market. Which is one reason I have not posted about Gold in a while.
I’d continue to be a seller at the 1800 level. I have that as an upside target in the next 6 weeks, before years end.
Longer term its interesting to note the following. At its bottom, gold in November of 2008 traded down to just below 800 bucks an ounce, down at 783. We topped $1,114 dollars 4 1/2 years later in August 2011 at $1903. If you recall, right about that time, the airways were full of gold touts talking about 2K , 3K or 5K an ounce gold. Hmmmmm.
Unless we can settle above 1800 an ounce, I really can’t get super bullish. I’d be a light buyer here today, , but my exit point and my sell initiation would be the 1790 to 1800 level. Why 1790? I don’t want to miss the trade trying to get the 1800 tick. I’d have that as a target. That’s about it.
Downside, how about the $1,542 tick back in May of this year?
CER