Possible correction. Looking at uptrend to $1800.
Currently gold is in a correction. Support level at 1703 and resistance at 1734. Looking at previous trends in gold and back testing, gold could end the correction and look to the upside if the price can stay within 1700 range. If gold drops below 1700 we could see a sell off of long positions and drop back to 1690-80. If there is heavier volume buying and the resistance is breached beyond 1734 gold we could look to break its 1764 record and aim for 1780-1790.
From a fundamental perspective and in my opinion, Gold long term is a buy with Bank of America giving a price target of $3000 per oz. Also with the US government's unlimited quantitive easing and a balance sheet of $7 trillion plus, the US dollar will surely collapse in the coming years or at least devalue.
If anything you feel I'm saying is incorrect with regards to technical and fundamental analysis please comment. I'm a learner using my knowledge and understanding to put into use.
From a fundamental perspective and in my opinion, Gold long term is a buy with Bank of America giving a price target of $3000 per oz. Also with the US government's unlimited quantitive easing and a balance sheet of $7 trillion plus, the US dollar will surely collapse in the coming years or at least devalue.
If anything you feel I'm saying is incorrect with regards to technical and fundamental analysis please comment. I'm a learner using my knowledge and understanding to put into use.
Comment:
As suggested, gold has breached the 1734 resistance and we should see a continue in the uptrend to the next resistance level which is 1763. Once this resistance is breached we'd be looking at a correction with over buying from people coming in late to the market.
Comment:
As predicted, gold correction completed at 1699 and reversed to an uptrend. The resistance level has been breached with the new resistance at 1743.