Do we see Gold going to test $500 Levels?

POST AND VIEW COMMENTS

Do we see gold going back to test $500 levels?

I don't think so. I think there is enough liquidity right now and enough of story behind gold where people will continue to buy gold at dips. So, we may see that price may come off a bit. But we will find liquidity rushing towards the market and supporting the downside.

Was this a technical correction that has now stabilised a bit or are we genuinely seeing funds coming back and going long on gold again?

I think it was a technical correction. I think the market movements have been uni-directional, right from gold being at $400-720. So, it needed some healthy correction. But we still see funds coming in so I think there is some support on the downside for this metal.

Is the worst over for gold now or is it just a technical pull back bounce from oversold ground?

The situation right now is that we have a market, which is going absolutely bizarre. We had some kind of correction, which is coming back to reality. The basic story still remains bullish. We needed to have a correction just to bring sanity back to the market.

What do you think ?

PASS YOUR COMMENTS