Gold - Buy The Next Dip Around 1,240 USD
As expected gold continues to trade between 1,200 USD and 1,300 USD. The recent strong recovery from 1,215 USD up to 1,295 USD just two days ago was a bit surprising as we´re getting close to the FED meeting next week and seasonality is not really favorable in spring.
But gold is showing more and more strength and has already been breaking out above its depressing six-year downtrend-line and the corresponding large triangle pattern! This is a super strong technical signal. Today gold came back towards 1,271 USD signaling that this break out might not yet be sustainable. But today´s pullback could also be the typical test of the former downtrend-line.
Looking at the overbought daily and weekly chart and the lagging miners as well as a very oversold US-Dollar it´s most likely that gold will drop back to its falling 200-day moving average around 1,240 USD over the next couple of days and weeks. This would be another great buying opportunity as I believe we´re getting closer and closer to the big rally towards 1,500 USD.
My recommendation is to buy any dip towards 1,250 USD and also start loading up on selected mining stocks over the next couple of weeks. I think especially silver mining stocks will do very well later this year.
But gold is showing more and more strength and has already been breaking out above its depressing six-year downtrend-line and the corresponding large triangle pattern! This is a super strong technical signal. Today gold came back towards 1,271 USD signaling that this break out might not yet be sustainable. But today´s pullback could also be the typical test of the former downtrend-line.
Looking at the overbought daily and weekly chart and the lagging miners as well as a very oversold US-Dollar it´s most likely that gold will drop back to its falling 200-day moving average around 1,240 USD over the next couple of days and weeks. This would be another great buying opportunity as I believe we´re getting closer and closer to the big rally towards 1,500 USD.
My recommendation is to buy any dip towards 1,250 USD and also start loading up on selected mining stocks over the next couple of weeks. I think especially silver mining stocks will do very well later this year.
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