By Jeff Pierce

Gold is likely to have a short term bullish bias now that it’s retested the July lows, held, and started to move higher off those levels. Back in August I suspected we would have to revisit the lows before we could say a decent support level could be formed and now the $1175-1225 level seems to be that support it needed before finding a bottom.

I have a feeling that we’ll be looking back month’s from now when gold is back to $1400 level thinking that the easy money has been made on this trade when it trades back into resistance. At that time we’ll have a clearer picture if July 2013 was the lows or if it was just a stop gap before gold makes it’s ultimate bottom near $1000.

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Gold weekly remains in a long term uptrend.

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One Response to “Gold Likely To Trade Higher Short Term”

  1. Anthony Alfidi Says:

    Whether gold goes higher depends on where short-term interest rates go. Any rise in interest rates will strengthen the dollar and depress demand for gold as a hedge. Rising rates will also force down bond prices, and if leveraged institutional investors (hedge funds) see their bond holdings drop they may face margin calls. Selling their gold positions is one way to meet those margin calls. The selling pressure will of course force down the gold price.

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