Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Gold And The Rule Of Maximum Pain

Published 06/15/2014, 12:22 AM
Updated 07/09/2023, 06:31 AM

Three weeks ago Gold broke down below support near $1275. At that time it was impossible to find a single bull in the room. Speculators (trend followers) also began initiating fresh short positions and there were a slew of blog posts proclaiming that gold was headed below $1000 in short order.

As is often the case, the crowd has been exactly wrong in recent days as gold has clawed back to previous support near $1275:

Gold Daily Chart

The real challenge for gold begins in the coming week as there is sure to be ample supply between $1275 and $1300.

Finally, those who attempt to attribute this past week’s gains in the gold price to the Iraq insurgency are surely fooling themselves. The gold market has been fairly easy to figure out this year; it moves whichever direction punishes the majority of market participants. Expect more of the same for the foreseeable future.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.