Market Leader informed
Nothing can last forever, especially a natural economic process… This is a law. That is why, considering the urgency of the current investments in gold, we strongly recommend: “Don’t be risky. Don’t invest in gold”.The weak US dollar has allowed gold to become less expensive for those investors who use other currencies than USD, stimulating the demand for gold for a long time. However it is impossible to deceive the law of demand and supply. Owing to the growth of gold delivery volume from gold-mining companies and secondary sources, the market has become saturated. The considerable decline in demand for gold by jewelry manufacturers and other final consumers makes the gold market retrace as well.
That is why gold is very likely to get cheaper in the short run. How considerable is the fall going to be? It depends on investors’ purchasing power and their desire to close the “long” positions.
If the market of gold doesn’t face major Chinese or Indian market interventions, the price will be gradually falling down to $1300 per ounce. After the price reaches the level the investors will start taking profit. If any intervention occurs the $1350 level will become
a new “psychological” point of retracement.
Whatever the future situation may be, one thing is absolutely clear - “the golden fever” is over. It is time to take profit.
Gold is still staying inside wave c (C ) of wave level MN while forming wave C on D1 after making a historical high at $1364. Currently, 1348 is an important resistance level. The analytic service under the Department of studying Masterforex-V trading system reminds you that in order to reverse the long-term uptrend the price needs to come out of the MF Sloping Channel on D1 and to form a correctional wave, which will further indicate the most likely way of further price movement.
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