Alex Weber: outlook for GOLD
I've received a lot of questions on the issue of near- and medium term prospects of GOLD as of late. Let’s cast a glance at this dynamic market.
In late October XAU/USD pulled down from the major resistance at 1250 and plummeted towards 1150 as we speak. This is the lowest level since winter 2010. Bears are evidently leading the game: the Fed rate hike expectations are on highs these days.
However, the short positions are now at their record highs, so I would recommend waiting for a bullish rally to reenter the market. In the coming days we could see a retest of the 1250 area. Bearish targets are seen at 1180 (June 2013 minimums) and at 1080.
I'm open to further questions and discussion.
Chart. Weekly XAU/USD