Inside Scoop: Gold Traders Are Buzzing About This One Number
In the gold community, there's a lot of buzz about one number right now.
That number is $1,360 an ounce. A key price that gold bulls have tested several times in the past three months.
You've heard the expression: Knocking on the Door of Big Opportunity? That's what gold is doing right now.
Don't take our word for it, listen to what Jeffrey Gundlach, CEO at DoubleLine Capital said about the gold market last week.
"Something big is happening," Gundlach, who oversees more than $119 billion in assets, said about gold to Reuters.
He pointed to the technical charts of gold, which plot the daily prices and said that "explosive potential energy" of a huge base was signaling a $1,000 move in gold.
Take a look at Figure 1 below, which shows daily price action in gold. Several times in 2018, the gold market has been knocking on the door of a key price ceiling $1,360 an ounce.
Coiling: Just Like a Spring
Technical traders like to use a term called "coiling." Think of how a spring is all coiled up, but then explodes higher. That's what gold is doing right now.
Gold is coiling in a narrow and well-defined price range between $1,360 and $1,310. A bullish breakout above $1,360 will trigger a massive buy signal and gold, with the first stop at $1,400 an ounce. The rally will likely be fast and furious as day traders and momentum traders pile into the market at this key level.
You've Heard The Advice Before: Buy Low
The price of gold is near the bottom of the range right now. That offers investors an excellent buying opportunity before the price rebounds to the top of the range.
One of these weeks, there will be a trigger, and gold will smash through that $1,360 ceiling and soar fast toward the $1,400 level.
Would you like to be able to say you bought at the low? Act now and you'll get bragging rights along with a nice big profit on a bullish gold market breakout.
If you enjoyed this article, please share it with a friend.
Start the conversation. Have a question or comment? Leave it below.
A Blanchard expert is happy to help guide you through the purchase process and help you select an investment appropriate for you risk tolerance and long-term financial goals. Call a Blanchard portfolio manager today at 1-800-880-4653.