{"id":20418,"date":"2022-12-09T07:30:15","date_gmt":"2022-12-09T12:30:15","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20418"},"modified":"2022-12-09T07:30:15","modified_gmt":"2022-12-09T12:30:15","slug":"consider-this-before-you-buy-gold-right-now","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/consider-this-before-you-buy-gold-right-now\/","title":{"rendered":"Consider This Before You Buy Gold Right Now"},"content":{"rendered":"

Gold looks like it could use a rest…<\/p>\n

The price of the shiny, yellow metal has rallied nearly $200 per ounce over the past month.<\/p>\n

And it’s probably headed much<\/em> higher in the months ahead.<\/p>\n

But for the very short term, it looks like the gold rally is on pause.<\/p>\n

To see what I mean, take a look at gold’s chart…<\/p>\n

\"Chart\"<\/div>\n

Last week, the price of gold ran into resistance as it approached its August high near $1820.<\/p>\n

At that point, all the various moving averages (blue, red, and green lines) were expanded quite far away from each other. So, there wasn’t much energy available to fuel a rally above the $1820 resistance line.<\/p>\n

Readers should also note that all the momentum indicators at the bottom of the chart (MACD, RSI, and CCI) were showing negative divergence.<\/p>\n

In other words, as the price of gold rallied to a higher high, the momentum indicators were making lower highs. This negative divergence is often an early warning sign of an impending decline.<\/p>\n

Since then, gold pulled back and tested the support of its 9-day exponential moving average (EMA – red line). And support has held… so far.<\/p>\n\n\n\n
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Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The various moving averages are still too far apart to fuel another strong move higher. That makes it hard to argue for an immediate rally.<\/p>\n

Instead, the best the gold bulls can hope for is a several-day period of choppy, back-and-forth action that allows the moving averages to catch up to the price of gold… to coil together… and build fuel for another rally attempt.<\/p>\n

The worst case would be a sell-off down to one of the lower support lines near $1750 and $1710.<\/p>\n

Gold tends to trade weak ahead of a Federal Open Market Committee (FOMC) announcement on interest rates.<\/p>\n

So with the next announcement due Wednesday, it seems gold may be headed to one of those lower levels.<\/p>\n

That doesn’t mean traders should be selling gold right here. The long-term outlook remains as bullish as ever.<\/p>\n

But folks who are looking to put new money into gold should consider waiting a few days. We may be able to get in at lower prices.<\/p>\n

Best regards and good trading,<\/p>\n\n\n
\"signature\"<\/td>\n<\/tr>\n<\/table>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Are you still bullish on gold\u2019s long-term outlook?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

For the very short-term, it looks like the gold rally is on pause\u2026<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-20418","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20418"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20418\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20418"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20418"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20418"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20418"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}