Gold Price Looks to Take a Rest

New York (Aug 6)  On Monday, with equity markets getting hammered, gold was flying higher as it makes a run at our first target of $1,500. Gold reached $1,487 Monday, and every attempt to sell off was met with buyers.

The overnight trade saw equities down another 500 points before staging a “rip your face off” reversal and is now almost 300 points higher. The reversal in equities is no surprise, nor is the small sell-off in gold overnight. Gold appears to be a little overbought and should take a rest for a couple of days.

With gold rallying from around the $1,400 level, which was one of our buy spots, the move up was a little too fast. We expect gold to go sideways for the next couple of days to resolve the overbought conditions. $1,450-$1,460 should be the new support and a level to buy. $1,500 is coming, the only question is when.

KitcoNews