RE: price of gold articleFG report (Friday, Jan.28,2011
It's definitely a short-term postive to see gold move backup through $1,322, and even better, close out the week backabove $1,335. These are both important energy levels, and ifgold can stay over $1,322 early next week, it should have afairly easy path back up to $1,355.
But there remain numerous big retracement levels in this$1,355 - $1,365 zone, so while it may be relatively easy and"natural" for gold to climb up to there, actually gettingthrough that zone is a different story. It's going to take anew source of fresh bullish energy to accomplish this, whichgives us an easy decision point for trading positions.
In my opinion -- and I'd be delighted to be wrong aboutthis, as it would create some explosive trading set-ups --gold is not going to be able to muster the strength to getthrough $1,365. So this zone should end up as a good entrypoint for short positions.
But again, if gold gets through there, then there could bea highly energetic rally out to February 18th, so we will wantto get on board with long positions for that move too.
You would have to be a day-trader to not have been brutallywhip-sawed by the action in gold over the past few days, andthis is fairly typical in a strong corrective pattern in itsearly stages. But we should end up with much more clarity ongold once we see how it handles this $1,355 - $1,365area.