Gold hovering around $885

By Paul | Published: January 18, 2008


Gold doesn’t seem to be falling much like a correction would. The current price is inching lower instead of falling as it should based on the MACD and Stochastic bearish signals are disappointing. It’s just going sideways. So I’m wondering would this be just a brief consolidation before it rises to new highs again? This uncertainty is definitely why the price is going sideways at the moment.

Price is about $885 at the moment. It would have been better if I only had my 2 positions from above $886. But I entered 2 more shorts at $880.10 in fear of missing the train. That was definitely a mistake because it hugely increased my risk. I pretty much got in at the bottom of the current trading range. I could have entered easily at $886 from the bounce when the indicators were right.

Last night, price of gold dropped to $870.80 and I had over $1000 of paper profit. But it was short lived.

I won’t cover on panic at the moment. I might cover the 2 extra shorts on the next bump. Just so I can makeup for my greedy mistake and lower my risk exposure in this uncertain situation.

However, after dropping for 3 days in a row, today’s higher close is expected. Next week should be more telling.

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