Gold Setting Up for Another Rally?Posted 03/15/2019 9:20AM CT |
April gold has seemingly put the brakes on the recent breakdown from highs of 1350 to the lows of 1280. There were a number of factors that caused the sell-off, but right now there could be a big looming reason for gold to rally back to highs and then some. U.S. equity markets could be in for a severe pullback over the coming months, and it’s time that investors start paying attention to the data that comes out over the coming weeks. We have already started to seen some of the data slip, with a recent jobs report coming in well below expectations of 180,000 at 20,000 for February. If we start to see more data with misses as big as this, or even a string of data that comes in below expectations we could very well see another panic selloff that we saw in December of last year which in turn could propel gold into new high territory of toward 1400.
If you look at gold from a technical perspective, the move back above 1300 is clearly a bullish sign, and with today’s move as I write this up $10 at 1305 the next level to watch for a breakout is 1312. If this recent high is taken out I would be looking for the next level to takeout at 1330. If this is taken out new highs in April gold is more likely than not. If you would like to know how I would be playing gold, given the recent price action please contact me directly.
Gold April ’19 Daily Chart
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