Our technical analysis of the dollar and global markets along with the silver chart provided strong confirmation of trading Gold long while equity markets dip.
Gold trading is usually the realm of speculators. When equity markets are considered risky assets then the majority of institutions and traders will look to alternative assets to hedge any loss on equities. In order to do so, traders will trade gold as a safe haven asset.
We traded gold short from $1187 to $1165 before closing out. We watched to see if the global markets would break down and or that the gold price would also break resistance at $1187. Once this took place, we looked to go long. For conservative investors the next gold trading opportunity was today at $1217 with the potential profit target of $1280.
As it happens, the dollar has gotten somewhat stronger and dampened the momentum of gold bulls for now. Nonetheless, the equity markets look to continue their bearish momentum which should also fuel further safe haven asset investment like gold.
The gold trading price is $1225 at the time of this post. We will move our stop to entry and hold for the next few days. Once the $1225 support level is tested and holds the upward momentum should continue.
Follow the money and you can make consistent profits.
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