Gold Price Eyes 2012 High Again Following Break of Negative RSI Slope

Gold Price Eyes 2012 High Again Following Break of Negative RSI Slope

It is only logical that after a major correction that the gold price would start to rise again and eyes will turn back to the mid-year highs. Is this time right for a comeback?

After last year's massive bust, does it make sense to expect a Gold Price rebound anytime soon? The answer is a resounding "no" as there seems to be no reason for the correction other than speculative reasons. To my knowledge, not one currency trading platform seems to predict the fact that the correction is coming.

It seems to me that this is yet another one of those bull markets that has an imminent end in sight as it is a short term correction. So I ask, is the correction going to continue in 2020? Should we expect more corrections before it ends?

In my opinion, if the Gold Bull Market was to continue, then we would see some sort of price action to match the correction or downturn. If the gold price takes a dive, then there is the chance for a rebound and most likely the current sideways price trend will end with an uptrend as always.

To be honest, the re-rating of gold by many economists may help the recovery along as many will be attracted to a safer and more liquid investment. I would say most people can't afford gold today so it is quite understandable. Also many are attracted to hedging the risk of inflation and the rising dollar.

And as they say in the money management industry "what you don't know can't hurt". It is up to us to find ways to diversify our portfolio and hedge the risks that we face in the current economic environment.

We should all see this Gold Price rebound as "stopping your nose before it turns to gold". I think the way to look at it is, "diversifying my assets" as I am not holding any of my gold and I diversify my investments in stocks, bonds, and the like.

What about a short-term rebound in gold? Perhaps a pullback for a while but it has been steady from the recent highs. It is a bit of a risk to put all your eggs in one basket, but if it does come to fruition I am more than willing to take that risk.

We need to remember that it takes a huge amount of capital to be involved in the financial markets as there is a lot of leverage involved and no one is going to take any risk of losing all of their money if the market takes a dip. And if you don't hold the bull on the gold price then what makes you think that you are going to be right on the next rebound?

The answer is simple, it takes intelligence to take any position that involves investing in stocks and bonds, futures contracts, and even the gold price. So that is where we need to focus our attention.

There is one thing that all of us can do though that will help keep our eye on the gold price as we go through each market period. That is to continue our regular trading habits and stick to the day trading plan.

By sticking to that plan, we allow our brains to allow us to avoid the pitfalls that will make us lose money in the market and help us stay focused on the gold price. Remember these old words "Steady as the gold price".