Gold: Long-Term Buy
Gold, Daily Chart Analysis
Gold has been trending lower since the first round of the French elections, and it dipped $80 to hit $1220 this week. The re-test of the previous low near $1195 is still possible, as we are approaching a possible cycle low in the coming two weeks. That said, the risk-reward ratio for a long-term purchase is already favorable, with a likely test of the $1315 level in the next long-term swing higher.
Stop-loss orders should be placed just below the $1195 support, although the $1180 level could also be considered for a more robust position. The upper boundary of a long-term triangle pattern is right now at $1270, and a break above that level would confirm the new bull market. The initial target zone for the trade is just above $1300, while a push towards $1350 is also possible.