Gold – Sell all rallies


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This has been the trading call on Gold for last 6 weeks. U.S. default/shutdown.

Image courtesy the Bank Of England: Fed No-taper, weaker economic data, Larry Summers off the table...  each time gold bugs have screamed rally only to be smacked down.

Broader sentiment says to sell medium term rallies.  Gold price action today is disappointing after the lack of political progress should have given bulls a chance to push it.

There is a view in the market that long term sellers (producers themselves) have been aggressive over last month and they are still in the market even after the move back.

Gold can't rally over the 20 day moving average and a debt deal should ultimately lead to a test of the June $1,200 level.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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