Comment: In times of financial crisis it is normal for investors to seek out the safety of gold. It certainly has done a lot better than silver or Crude Oil this year, and better than the Euro over the last month. Having completed a corrective move lower and bounced from retracement support mid-September, it is now struggling badly with resistance at the top of the Ichimoku ‘cloud’. With a little luck the bottom of this formation will continue to provide support, and later this year we feel Gold should rally back up to $950.00, maybe $980.00.
Strategy: Attempt longs at $885.00, but be prepared to add to $775.00; stop below $740.00. Cover longs between $920.00 and $935.00, rebuying on a weekly close above $945.00 for $985.00/1025.00.
