Safe Havens are Back: How High Can Gold Run?
Rowan Crosby • 1 min read
Now that we have what seems like our weekly rally in the safe havens, let's take a look at what might be in store for gold.
Firstly let's remember the way these trades seem to play out. Traders like to be protected as they come into the weekend. If you buy an asset like gold, should there be any more headlines over the weekend, then those traders are effectively hedge their portfolio.
What can happen is that we get a run up in prices on Friday, followed by a gap down on Monday if nothing more happens, or a gap up if more headlines hit.
Gold In Play
Either way, a great trade is to buy gold on a Friday, given the current climate. I’ve been trying to buy gold on a retrace to either support or the upward trendline. At the moment that appears to be around 1325, however, it might be hard to get at that price now. The next resistance level is around 1338 so I would also be tempted to buy ahead of a test of that level.
In terms of the upside, I think we could potentially reach the 1347-1354 range by day's end if we gain some steam.