Gold has been my most successful trade in the month of August. After surpassing my price target of $1360 and eventually breaking $1400, I believe that Gold has hit a shot-term top and will pullback a little. I’m looking at the $1350 level.
My bearish view on Gold is based on both Technicals and Fundamentals. Technically, Gold hit a reasonably strong Resistance, which it failed to break, and Gold’s bullish momentum has been stalled for now. Fundamentally, if and when Mr. Obama chooses to bomb the shit out of Syria, usually the trade is: Long USD and US Treasuries, Short Gold/EUR/JPY/etc… Now, I understand that there is always the possibility that a War might slow down the economic recovery, thus forcing The Fed to postpone its QE Taper, which will in turn be Dollar Negative and Gold Positive.
I recommend a wait-and-see approach on Gold.
Here is the daily chart of Gold (Spot):
Price Target: $1350
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