1. Gold has arrived at the $1220 support zone. Please click here now. Double-click to enlarge.
Note the position of the Stochastics oscillator at the bottom of the chart. Significant rallies tend to begin from the current position. Since Indian dealer stocking for the Akha Teej festival peaked a few weeks ago, gold has been declining (as I suggested it likely would). Top analysts at Goldman Sachs had a target of $1220 and that’s roughly where the price has fallen to. Please click here now. Double-click to enlarge. The downtrend from the April highs has been relentless for silver. To deal with this type of market, investors need to regularly stock up on put options. Another strategy is to carry some short positions (like the banks do). When there is no rally in a market, there is no possibility to book any profit on anything other than bets that the market will fall. I hold a lot of dividend paying investments in the precious metal sector as well as some short positions. The bottom line is that I believe in a coming bull era, but if I’m going to wait for it to happen, I want to get paid handsomely for the time I spend in the waiting room!
This post was published at GoldSeek on 9 May 2017.
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