Gold was trading in deep oversold area and bounce back was expected, though no one could have expected such a drastic upside movement. Basically it has triggered all short stop loss.
Also looking at the FED rate hike decision pending this month, investors don't want bullions to trade at lower levels. No one knows what will be decision....Hence If FED rise rates then Investors can sell and book profit in their long positions and short it again....secondly If no rate hike then they still have long positions which are in profit.....
Gold being Gold always expect unexpected surprise movement.....It has been seen many a times when everyone is expecting one side movement it will have a surprise movement.....
having said that key levels in Long positions are 26040-48, 26188.....Gold if close above 26220-26260 zone on daily closing basis can take gold to much higher levels till 26580-27052 ( Comex 1098-1102 is rejection zone, colsing above it can take gold to 1120 then 1140, 1180+ levels )......But Gold may reverse from any of these levels. Gold is still bearish.....I expect 24930 will be broken in next down movement for TGT near 23000 and below may be till 22700-22800 levels.....( Comex 960)....
My view in Comex for Long term is Gold will remain under 1120 levels and can take out 960-870 levels from where we can see jump towards 1450-1500 ( MCX 30000-32000) and then again a big drop till levels near 780 ( MCX 18000) and then rise for lifetime high above 2000 levels......In between we will have big spikes, drops etc etc.....I will buy physical Gold at level 780 and keep it for my Grand children............:-)
Also looking at the FED rate hike decision pending this month, investors don't want bullions to trade at lower levels. No one knows what will be decision....Hence If FED rise rates then Investors can sell and book profit in their long positions and short it again....secondly If no rate hike then they still have long positions which are in profit.....
Gold being Gold always expect unexpected surprise movement.....It has been seen many a times when everyone is expecting one side movement it will have a surprise movement.....
having said that key levels in Long positions are 26040-48, 26188.....Gold if close above 26220-26260 zone on daily closing basis can take gold to much higher levels till 26580-27052 ( Comex 1098-1102 is rejection zone, colsing above it can take gold to 1120 then 1140, 1180+ levels )......But Gold may reverse from any of these levels. Gold is still bearish.....I expect 24930 will be broken in next down movement for TGT near 23000 and below may be till 22700-22800 levels.....( Comex 960)....
My view in Comex for Long term is Gold will remain under 1120 levels and can take out 960-870 levels from where we can see jump towards 1450-1500 ( MCX 30000-32000) and then again a big drop till levels near 780 ( MCX 18000) and then rise for lifetime high above 2000 levels......In between we will have big spikes, drops etc etc.....I will buy physical Gold at level 780 and keep it for my Grand children............:-)