Gold Price Looks To Be In Trouble

New York (July 23)  While many wish and predict that gold has hit bottom, the charts tell a different story. The $1,240 area is now a major resistance level, and gold is more likely to break to the downside, probably below $1,200. Our next target and support level is $1,180, although a bounce from $1,200 would be no surprise.

On Thursday, gold printed new yearly lows and bounced, looking like it had made a new bottom. However, the rally looks more like a dead-cat bounce and any rally to $1,240 should be sold. There is no reason to believe the bottoms are in and more selling is near.

Gold investors should not panic or sell if the investment is with money they won’t need tomorrow. Traders should look to be more active, looking for resistance levels to sell. The next level that we will sell as traders is $1,240, but as investors we will hold our position and not try to time the market.

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