FxWirePro: if you are a bull, where to buy gold?

We, at FxWirePro are bullish on Gold, however we are yet to become a super bull (one rank below super-duper bull) as gold hasn't broken the resistance around $1320-1340 area. So one of our scenario is still indicating that Gold might drop beyond $1000/troy ounce area. Goldman Sachs called for $1000/troy ounce by year end. We are not calling anything of such type but again highlighting that one of our scenario is do pointing in that direction. As of now, we are aligning with majority of our scenarios and we are bull over gold.

Gold has plenty of opportunity to move higher, especially if the current market turmoil persists and Dollar weakens. Weak Dollar and safe haven buying, both will be supportive of gold price.

Gold has reached both of our target areas of $1230 and $1140 from our call point of $1090 area.

What happened in Gold is probably more important technically than fundamentally.

Technically speaking, Gold has broken above downward sloping trend line ceiling. However, we have warned in our previous gold post that we need to be very cautious as almost equal possibility lies of breakout as well as false. Opportunities are great in either of the case.

As of now, we are with the bulls, however a false breakout might push us towards the bear camp.

Trade idea & next call

We expect Gold to find support around $1201-1180 region and $1230 area to pose some resistance as well as the recent high around $1265 area.

However, if the $1180 area succeed in providing support as expected, Gold might begin its next rise to reach $1350 area.