Gold may move sideways for sometime now and but we are still sure that asset bubble is still far away at this point of time. So still it attractive from the buyers point of view, gold
is still considered as safe heaven asset. We are suggesting that above
the 2350 level gold will be a asset bubble for then. The recent price
action suggested that consolidation is ruling the gold market right now,
so this is time for accumulating some long positions in Gold related
asset classes, this can be Gold ETF
or Gold futures contract on MCX or NCDEX. Gold being safe heaven asset,
so at bad times we see its demand increasing sharply on account of
speculative profits. This is the time to buy gold above the 1800 level
for short term (3 to 6 months) targets as 2000 and then 2180 level,
traders are also advised to place their stop loss for this trade just
below the 1700 level. We are looking for buying opportunity as long as
gold firmly trades above 1500 level. For now the target will be such
higher level where actually the bubble will be forming. Recently the
stock markets were under performing other assets, so this was the time
to invest in gold till we see equities become attractive to invest. If
one trades using technical analysis, then those will be more successful in the long run in financial markets, including equities, commodities as well as forex.
Is gold forming a asset bubble, our advice is to trade long on Gold
above 1830 level for short term trading targets as 1999 and 2170. A
protective stop loss order should be placed just under 1700 level.
