So far there has been no real surprises in the gold market. Last week gold rushed to seven-year highs at 1566, today gold sits at 1502. The overnight range is 1494 – 1508 with it sitting at 1502 as of 6:30 AM EDT. Notice the back and forth around the 1500 level deciding if the rally is over or if this is just another buying opportunity.
The case for either side is not clear, if support doesn’t hold gold could get ugly, if gold holds, we could see 1600. Based on the market footprints support should hold and the rally continue. The answer will play out over the next few sessions, but the answer lies in the 1500 level. If the level holds, it’s a gold rush, if not it could be a crush.
The key to remember is simple, watch the levels and relax. Panic does not mix well with trading and investing, it creates bad decision making. Emotions have no place in the investing world, when traders and investors let emotions take over, they lose focus, money, and opportunity. Watch the levels, let the markets trade and make decisions based on the pattern, not fear.