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Gold Support Levels | Perspective | 6th October 2016

Gold Support Levels | Perspective | 6th October 2016

Gold Support Levels | Perspective | 6th October 2016

by | Oct 6, 2016 | Insights, Perspective | Chamber of Merchants | 0 comments

Gold Support | Perspective | 6th October 2016

Just a quick chart of what I see in the gold price support zones as well as what I expect in the gold price over the next few days.

Although it would be convenient and comfortable to bounce from this level around $1260 something, I am mentally prepared for a dip below $1250.

[Disclaimer: I’m not a financial advisor. Your wealth is at risk. Seek professional advice and do your own research. You’re reading the thoughts of a trader that has put his own wealth at risk. Don’t base your trades on this information. This entire site is for educational purposes only and a financial professional should be consulted before making any financial decisions]

There are many large investors and banks that were caught in the short squeeze when we hit the Brexit bull run.Breaking below the $1300 support zone may have been the perfect time for them to exit their short positions. In a prior post, I also mentioned that  I expect the bounce back to be sharp and aggressive as the new short-stops, from traders that recently jumped onto the short-sell bandwagon, get knocked out on the way back up past $1300.

gold-support-6th-october-2016

gold-support-6th-october-2016

The ADP Non-Farm employment came in well below estimates. This bodes poorly for the Jobs numbers on Friday. The jobs number will probably be the catalyst to start the Dollar sell-off again, which will see the aggressive rebound in gold. If the jobs and employment numbers are poor then the market will realise that there was never a rate hike on the table for November to begin with. (And I won’t need to eat my phone and post the pics on twitter.) I also think the rebound will occur before the numbers are released because smart money is smart. If the numbers are good, I still expect a sell-off  on a “buy the expectation, sell the fact” principle.

Don’t miss this morning’s post on when traders get itchy fingers.

Think More.

| the Merchant

 

[Disclaimer: I’m not a financial advisor. Your wealth is at risk. Seek professional advice and do your own research. You’re reading the thoughts of a trader that has put his own wealth at risk. Don’t base your trades on this information. This entire site is for educational purposes only and a financial professional should be consulted before making any financial decisions]

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