GOLD has been in somewhat of a funk this year. After opening
2012 near $1565 and running to nearly $1800 in late February, the yellow metal
has continued to fall back below its 200day moving average and near todays
price of $1650. The 200day moving average seems to be THE area of most
importance so the longer it remains below the 200day the more likely it is to
fall. [Note: Despite the global printing of money and the likely long term
investment thesis behind a continued bull market in gold, this is how it looks
currently.]
As for now GOLD is trapped in a narrow range of
trading...lets call it $1700 on the upside and $1600-$1610 on the downside. Any
breach of either of those levels will cause an additional move of approximately
$100 in the same direction. One way to play such a move (if you are not playing
gold futures or GLD) would be the major miners GDX or the juniors GDXJ...something
I will explore more in the future.
No comments:
Post a Comment