The interesting thing about trading is it takes a buyer and a seller to make a market, which then creates price discovery. Two traders could look at a gold chart and have opposite opinions — one bullish and one bearish. Of course, this is what makes a market.
Many out there use many different indicators and tools that have been developed over the years. The problem with these indicators is traders try to use them as an absolute instead of the guide they were designed for. Trading is a game of probability not an absolute.
Based on all factors, the probability that gold has seen the bottoms or at least the near-term bottoms is very high, suggesting that being long gold at these levels has a higher probability of success than being short. There is an option that most hate to use as they get caught up in their opinions and that is the tool of patience.
All real factors are that gold is forming a bottom and if a trade must be made here, it should be bought. However, we believe the best trade here is observation, letting gold complete its bottom, giving us a higher probability by just being patient.
Contributing to kitco.com