The price of gold has been rising steadily for the past several months with what appears to be no end in sight, and has been range-trading widely between $1280 and $1400 these past few weeks. The expectation among many analysts seems to be that gold should continue trading in the $1300s through the month of November.
This flat trading behavior may then start to die out towards December when the steadily rising prices we’ve seen among the precious metals markets continues with full force.
A ray of sunshine for investors, however, is the predictable bouncing behavior we should see in gold prices for the next month or so. I’d expect to see gold bouncing against the $1280 price mark at least one time before continuing a strong uptrend heading into the global holiday shopping season. Entry orders for long positions around that price are to be expected; I would be surprised to see a major breach below that point as a result.
Below is the weekly chart of gold provided by ForexYard. I’ve drawn Fibonacci retracement lines over the chart to illustrate the support and resistance levels relevant.
It’s clear that at the 61.8% retracement level we have a very solid support line which has been tested in the past two months. This line is also on the price of $1280 an ounce which, as mentioned earlier, represents the lower border of our range-trading trend.
Once again when the rising trend has been identified, traders should only be long on gold. Entries and exit strategies should then be identified from the daily and hourly charts.
Gold Weekly Chart
