Yesterday Gold has made its life time high by moving above the $ 1600 per troy ounce. Now we are extremely bullish on gold in near term and taking a looking at the daily charts we see that gold has resumed its long term bullishness by creating a series of higher high and higher lows suggesting us a strong up trend. So taking advantage of this up trend we will be looking for only buying opportunities as long as price action is above the 1590 level. As gold is always considered as safe heaven, so for now money is flowing into the gold related assets mainly by the large Hedge funds and Gold ETF’s, also we have confirmed that major funds have increased their holdings by more than 1% this is the reason why the gold is trading at its all time high level. Daily charts suggests that price action is supported by a rising trend line, So we see further strengthening in gold in near term from current levels. This makes the short term trend to bullish and for the medium term also bullish. Today’s trade is supported by the technical analysis and recommends us to enter long positions only. Studying technical indicators like RSI, slow Stochastic, and MACD suggest that the long positions are valid and are in favor of trade on daily chart and even on lower time frame charts like hourly charts. Trend is most likely to be bullish today.
Our recommendation on Gold : Gold technical analysis for 19 July 2011 trading levels, we recommend to trade long on Gold above 1597 level for targets as 1608 and 1616. A protective stop loss order should be placed just below the 1590 level.