Currently there is a high probability the gold price will retreat from $1,350 and retest support around $1,290. This is the short-term outlook and it offers short-term retreat and rally trading opportunities.
We use the ANTSSYS trade method to extract good returns from this behavior.
The long-term outlook is mildly bullish. The general upwards bias in the gold price starting in January 2017 suggests a weak and slow uptrend with a long-term target near $1,490. This is a six to twelve month outlook. This target is calculated by measuring the width of the trading band and projecting it upwards.
A rise to this level is most probably a slow and unstable move with many tests of GMMA support.
Daryl Guppy is a trader and author of Trend Trading, The 36 Strategies of the Chinese for Financial Traders, which can be found at www.guppytraders.com. He is a regular guest on CNBC Asia Squawk Box. He is a speaker at trading conferences in China, Asia, Australia and Europe. He is a special consultant to AxiCorp.
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