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2nd september Gold Trend Analysis

We will go right to the bottom line here ——-

Trades short term — long 1 dec mini gold at 1793 — current stop 1803 — raise stop to 1829 intra day –
long 1 dec mini silver at 40.80 — raise stop to 40.80 intra day stop—-

The gold market has exploded higher as the markets are in panic mode on a worldwide basis — with all equities getting really sold off —- as the jobs report was very grim in USA — and in Europe — the debt crisis —- is expanding and panic is setting in there also via Greece and the other debt nations.

Volume is very light in New York — and that is about the only good thing we can say for equities.

Gold is up 50 dollars at 1876 — and the potential for gold to peak in this 1876-1889 area certainly has potential. However —- a three day weekend is upon us and what happens this weekend is any body’s guess —- but what I’m getting at — is what if Gold gaps up again next week ? Is it worth it to be out ?

All week we mentioned on the web how everyone was looking for this pullback — but the market just kept going sideways and not lower. We mentioned last night —- the downside looks TOO OBVIOUS — and we stayed with the long.

Going to the chart

We’ve left just the pattern and the channel today. It looks like first support is the 1864-1869 area —– and the potential to move higher in gold from here can continue. It’s best to stay with it— as the worldwide panic in debt, and economy is pretty much here. Certainly a lot can happen over the three day weekend and with markets closed on Monday in USA. But the potential to gap higher cannot be eliminated.

Resistance is the 1890-1895 area ———- and then 1915-1920.

In summary — I’m staying with my long in gold and have raised my stop to 1829.