Here’s a little update from my Gold post of the 20th Jan which you can read here: Gold
In my previous post I talked about how having double bottomed nicely price was running into resistance around the weekly trend line / weekly 20 Moving Average and a resistance zone around 1265 -1275. I mentioned that if price bounced off that zone we may get the next leg down. Alternatively if price breaks and closes above that resistance on a weekly basis then we may have the possibility of an extended bullish run.
Well after a few weeks of batting back and forth around that zone of resistance we’ve seen a strong move to the north with weekly and daily closes above some of the levels of resistance. As you can see from the Daily chart below, price is now at the daily 200 moving average at 1290 after NFP and Janet Yellen’s speech. Daily closes above the 200 MA would give some confidence to continued Gold Strength and I’d then be looking for price to head towards the next resistance zones around $1322-$1332 followed by $1421 and finally $1487.
This is a perfect opportunity to use Binary Options to help take longer term positions in the commodity. That’s what I shall be doing. As always I’m interested to hear you’re own views on Gold. Its been an interesting 2014 for Gold so far and this maybe the sign of some continued gold strength for the remainder of the quarter.