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<\/p>\nGold has had a tough few weeks.<\/p>\n
After peaking just above $1,360 per ounce in early April, the price of the shiny yellow metal has crumbled. It traded as low as $1,303 yesterday.<\/p>\n
That’s a decline of more than 4% in just about three weeks. OUCH.<\/p>\n
This short-term selloff, though, is a good thing – especially for folks looking to add longer-term exposure to gold.<\/p>\n
You see… the long-term picture remains quite bullish. Take a look at this weekly chart of gold…<\/p>\n
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Weekly charts are long-term charts. Patterns on this timeframe usually take several months to play out.<\/p>\n
This weekly chart of gold shows the price tracing out an ascending triangle pattern. This is a bullish pattern where the chart makes a series of higher lows while running into the same resistance level. Most of the time, this pattern resolves by breaking out to the upside and accelerating higher.<\/p>\n
There’s room for gold to work slightly lower over the next few days. The price could decline to the rising support line at about $1,295 – which lines up well with the 50-week moving average<\/a>.<\/p>\n Notice, though, that all of the various moving averages are in a bullish configuration. That means the 9-week exponential moving average (EMA)<\/a> is above the 20-week EMA, which is above the 50-week MA. It’s rare to see strong declines occur with this setup.<\/p>\n It seems far more likely, to me at least, that any further decline in the price of gold is likely to find support near $1,295. Then it will start the next rally attempt. And – should that rally push gold above the resistance line at about $1,365 – it could kick off a longer-term bullish move towards the $1,580 level.<\/p>\n It has been tough for holders of gold to watch the price decline over the past few weeks. But that decline is temporary.<\/p>\n Gold is likely to be much higher by the end of the year than where it is today. Traders should take advantage of short-term weakness to buy intermediate-term positions.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>As volatility ramps up, it’s good to keep gold and gold stocks in mind. They’re a great way to hedge against a falling stock market.<\/p>\n But I recently started using a different method for trading volatile markets – one that practically guarantees my readers are on the right side of the market when it makes a big move.<\/p>\n Keep an eye on your inbox tomorrow for more details…<\/p>\n How have you traded gold since the start of 2018? And what’s your plan for the intermediate term?<\/p>\n Let us know, along with any other comments or suggestions, right here<\/a>…<\/p>\n We’re looking for someone who eats, sleeps, and breathes micro-cap stocks…<\/p>\n …someone who combs the market for little-known companies with explosive potential…<\/p>\n …someone with a deep network of contacts in a variety of industries…<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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