$1728 Is Key for Gold

Our belief is that the two-day selloff in gold is the result of a harsh correction compounded by a leaked CME report. Gold is down $170 from Tuesday’s record high of $1912/oz.

 

Gold weekly

We think this may provide another excellent buying opportunity for gold but in order for us to buy here we want to be confident there will be no weekly close below $1728. A close below that level would create a bearish engulfing candle on the weekly chart and point to a fall toward $1500.

 

We will be ready to add to our gold longs in our retirement account on Friday if it looks like gold will close above $1728. If not, we will be ready to hold on for the ride and buy more when it’s cheaper.

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