Gold falls to $4,300
I start buying some on the dip
$XAUT After gold surged to around $4,700, it finally saw a fairly meaningful round of correction.
Today spot gold is already hovering around $4,300, hitting a new low for more than three weeks, and it has been weak for the fourth consecutive trading day. The main pressure still comes from inflation concerns driven by rising oil prices, as well as higher U.S. Treasury yields. At present, the market-implied probability of a rate hike in September is around 67%.
But after it drops to this level, my strategy actually starts to change.
Near $4,700, I won’t chase. After a pullback from the highs of nearly $400, I’ll begin buying some gold around $4,300.
Of course, I won’t put all my position in at once.
Because the current gold price has already broken below the 200-day moving average—if $4,300 is lost again, there’s another level worth watching near $4,200.
So my plan is simple:
First, pick up some near $4,300; if it really gives way to $4,200, then buy more.
The long-term gold thesis hasn’t changed—it's just that I’ve finally waited for a much more comfortable level than $4,700.
$XAUT $XAU
I start buying some on the dip
$XAUT After gold surged to around $4,700, it finally saw a fairly meaningful round of correction.
Today spot gold is already hovering around $4,300, hitting a new low for more than three weeks, and it has been weak for the fourth consecutive trading day. The main pressure still comes from inflation concerns driven by rising oil prices, as well as higher U.S. Treasury yields. At present, the market-implied probability of a rate hike in September is around 67%.
But after it drops to this level, my strategy actually starts to change.
Near $4,700, I won’t chase. After a pullback from the highs of nearly $400, I’ll begin buying some gold around $4,300.
Of course, I won’t put all my position in at once.
Because the current gold price has already broken below the 200-day moving average—if $4,300 is lost again, there’s another level worth watching near $4,200.
So my plan is simple:
First, pick up some near $4,300; if it really gives way to $4,200, then buy more.
The long-term gold thesis hasn’t changed—it's just that I’ve finally waited for a much more comfortable level than $4,700.
$XAUT $XAU