Everything which glitters doesn't always goes up ! Gold may take advantage of thin holiday trading environment and may be successful in breaking few upside resistance zones. But for patient traders it just will be another opportunity to sell it again. Finally 2016 might be the year when we will see gold being traded sub $1000 level after many years.
Whether dollar rally will continue next year or not that's another question but as far as gold is concerned, we don't envision any catalyst for sustainable move up. Of course equity meltdown will boost gold but that is again a selling opportunity. We will try to trade it from both sides but with biased long term downside.
Looking at the current situation, 1100 is the first resistance gold will try to touch. So the trading strategy will be to wait and sell any spike move higher against the resistance lines shown in the chart.
Whether dollar rally will continue next year or not that's another question but as far as gold is concerned, we don't envision any catalyst for sustainable move up. Of course equity meltdown will boost gold but that is again a selling opportunity. We will try to trade it from both sides but with biased long term downside.
Looking at the current situation, 1100 is the first resistance gold will try to touch. So the trading strategy will be to wait and sell any spike move higher against the resistance lines shown in the chart.
We are riding it on both sides. long via calls during the rise till 1100 and now short via puts and net short in futures. This price action confirms our bias that Gold is not going to stay higher and sub 1000 level is coming soon.