Greetings!
We come to the end of the first week of 2012 with renewed safe-haven interest in gold emerging. Gold hit a low on this last correction of 1530. Last week, when I was interviewed for Bloomberg TV, the gold market was still falling. Trading at 1560 per ounce after falling from 1802, I was asked how low I thought this correction would take gold prices. I looked for a low to possibly retest the former low (1530) and said if this suppport level holds we should look for the market to begin an extented rally. I also said if 1530 did not hold we might see it go to test 1440.
Gold did in fact find support at 1530 and bounced off of the low fueling the 1st rally of 2012. We issued a buy signal as the market traded to 1570, and subscribers entered their longs anywhere from 1575 to 1585. As this week concludes we have traded as high as 1625. New York trading puts gold currently off $5.70 at just under 1616. We still have a few trading hours left in the week, but as long as gold holds above 1600, I think we have seen a KEY reversal, and an end to the correction that saw gold drop from 1920 to the 1530 low. Only time will tell if this is accurate, but I suspect there is a high probability that the bull has returned. As always wishing you good trading,
Executive Producer |
