It’s been a rough month for gold investors. No, make that a rough couple of years. Last month, on the heels of a gold rally, the Fed says “No taper.” And no rally? Then the government goes into shutdown mode. And still no rally? Is three times a charm for gold? Will the upcoming debt ceiling debate light a fire under gold? At least for a trade? Well, only if key short-term
gold support levels hold.
I’m not much for all the news and clatter (noise). Price is price and much of this stuff is priced in. That said, let’s take a quick look at some key short-term
gold support and resistance levels to watch in the days ahead.
In my previous gold update
, I noted the A-B-C corrective measured move pattern that traders should be aware of. That was met with some questioning, but the price pattern proved to be solid and gold fell from roughly 1435 to 1280, a nice .618 retracement of the rally. So there it is: Will this key gold support level hold? And could another trading rally emerge? Well, if it does hold, gold prices will then need to accelerate through the sloping downtrend. This type of price action would likely breathe life into a rally of sorts.
Trade safe, trade disciplined.
Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.
No positions in stocks mentioned.
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