Gold’s moment of truth
After a brief rally on Thursday, Gold is getting crushed again today. The selling began overnight at about 1:00 AM. The first dip was about 10.00 before the selling began again which brought gold down to 1497 and at a critical level.
The levels we are watching have remained the same which are 1495 -1500 based on the December futures. As of 7:20 AM gold is back above 1500 which is a positive sign, but the market looks weak. Although we remain long, we are concerned and wouldn’t be shocked if the levels failed.
This is where most traders and investors will fail. Many will get emotional about and sell their gold in a panic forgetting that the market footprint suggests that Gold is at a support level. We are not saying to jump in with both feet and buy, however there is no need to panic. If gold closes below 1495, liquidate. Panic selling or buying never work and those who do are always wrong.