Has gold proven that the bottoms are in? Is it safe to buy gold at these levels? We may have to check with Dustin Hoffman and Sir Laurence Olivier from the movie Marathon Man.
Gold has certainly done a lot of technical work and appears to have made higher lows within the consolidation levels. Our $1,180 level held and then the higher low of $1,190 held, all good signs for gold.
Gold is building a solid base and making higher lows. The concern here with gold popping $10 on Wednesday is will it be able to break through the $1,220 resistance level? We would expect the first trip to fail but more importantly we are focusing on buying at the higher low of $1,200.
The bottoms appear to be in and buying at the right levels appears to be safe. Although we expect a failure from $1,220, we expect the $1,200 level to hold and are buyers there. The footprints indicate that gold is safe and looking for buy levels is the correct strategy from here.
Contributing to kitco.com