What the Pros are predicting about future Gold Prices
With recent big downfall in Gold, many would think now is the best bargain price to buy the metal but the analysts at Credit Suisse are even more bearish on Gold predicting a $1100/oz-$1200/oz while same goes for BofAML Commodity Strategists Michael Widmer and Sabine Schels predicting similar levels to come...
Im myself is a big bull of Gold at this point but the ratings from the market commentators is still a sign we may see even more bearish moves in Gold in the weeks to come..
Gold formed a Daily white body yesterday. For the past 10 Daily candlestick bars as of 22/04/2013, there are 7 white candles versus 3 black candles with a net of 4 white candles.For the past 50 Daily candlestick bars as of 22/04/2013, there are 26 white candles versus 24 black candles with a net of 2 white candles.
Three Daily white candles has formed during the last three Daily bars. Although these candles were not big enough to create three Daily white soldiers, the steady upward pattern is bullish.
The RSI just crossed above 30 from a bottoming formation. This is a BULLISH sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a Buy 1 day ago.
The close is currently
BELOW its 200 daily moving average
BELOW its 50 daily moving average
BELOW its 20 daily moving average
I definitely would not call myself an expert on gold but I do have an opinion... Gold is in the hands of technical traders for a while and has some serious downside potential. My lower targets for gold are $1250 and $1200. This may take some time to achieve but I think it is highly likely. We will probably see some relief rallies along the way as pockets of gold buyers step in for low prices. My long term bearish view depends on a retest and break below the recent lows. Nearer term gold will continue a retracement and then sell off again. I am staying out of shorter term gold trades at this time and await a put buying opportunity to appear on the daily charts.
I think that’s normal to see some kind of correction after such a big selloff but the big question is what will happen after that? The precious metals are in corrective mode more than a year till now and there are two opposite scenarios. The first one is that we will continue the side way trading down as Michael suggested and will reach 1200 zone in few months, the other scenario is that we will start to rebound slowly and the 1300 will be the dip for the year. I bet that the second scenario is favorable, independently of the arguments that we have to see much lower levels this year.