Gold Price Forecast – Chase the Rally or Fade It

Gold Price Forecast – Chase the Rally or Fade It

Gold Price Forecast – Chase the Rally or Fade It

Gold Price Forecast futures are trading sharply higher during Monday’s holiday-thinned trading session in ny. Traders haven't been ready to pinpoint one particular reason for the surge in prices, but most agree it's probably associated with the absence of a stopper within the market, or a serious player that had been keeping a lid on prices for the past five weeks

At 12:08 GMT, February Comex gold is trading $1487.10, up $6.10 or +0.42%

Traders also are asking if the rally represents real buying or simply computer generated algorithms gunning for stop loss orders

No significant resistance has been taken out yet and therefore the market is simply testing the upper end of its two-week trading range

Nonetheless, there's the likelihood prices could escape over the foremost recent minor top at $1491.60 and a key 50% level at $1495.30
Gold Price Forecast Taking out these levels could trigger buy stops that would send prices even higher, on the other hand traders who missed the move will need to decide whether to chase the market higher, given the skinny volume, or fade the move. Chasing might be a dangerous play since this sort of move under these trading conditions often cause the formation of a bull trap

Is China the large Buyer Today

China, the world’s top bullion producer and consumer, launched its first gold options contract on the Shanghai futures market on Friday
Gold Price Forecast We’ve been saying for weeks that the chart pattern is indicative of accumulation. Perhaps Chinese traders are loading up for weeks just expecting the Free World to go away for the Christmas holiday in order that they could launch a rally

Is India Back within the Game
Gold Price Forecast CNBC is reporting that gold demand was subdued in major Asian hugs last week, with India within the midst of protests against a replacement citizenship law that disrupted some retail buying and traders elsewhere banking on the Chinese New Year for an uptick in sales

More Support for Accumulation Theory
Gold Price Forecast Perhaps indicative of developing bullish sentiment toward bullion, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3% to 885.93 tonnes on Friday

Additionally, consistent with data from the U.S. Commodity Futures Trading Commission (CFTC), speculators increased their bullish positions in COMEX gold and silver contracts within the week to December 17

Daily Forecast
Gold Price Forecast If you’re a technical momentum traders who focuses only on price behavior and ignores volume then you wish today’s rally and are anticipating a breakout to the upside

If you’re a trader who wants to understand the rationale for a move then you'll be a touch skeptical due to the thin-holiday volume. You’re probably asking yourself if this is often a true move, or simply a rogue trader or computer algorithm creating the illusion of shopping for. If that’s the case, you’re brooding about fading the move
Gold Price Forecast Personally, i think China is behind the rally for investment purposes. I also suspect there's a touch hedge buying happening as protection against an opportunity within the overbought stock exchange. I don’t, however, see any evidence of aggressive safe-haven buying since the japanese Yen and Treasury markets remain relatively calm