news.goldseek.com / By: Chintan Karnani, Insignia Consultants / 5 October 2016
Every day there will not be crashes in gold and silver. There will be pullback rallies. I will still prefer to use sharp dips today to invest in gold and silver for the short term. I am hoping that prices will recover after the US September private ADP numbers. Migrant problem in Europe and the UK exit from the EU backlash has resulted in the American dollar getting the safe haven status and knock down in gold and silver. Technical breakdown below key moving averages, buy stop losses getting triggered and option market covering all added to yesterday’s fall.
Key moving averages
Comex Gold: 200 day moving average $1285.90, 200 week moving average $1279.70, 100 month moving average $1289.
Comex Silver: 200 day moving average $1769, 100 day moving average $1928, 100 week moving average at $1633.
The best way to trade is to use technical instead of panicking. Gold fell below $1307 and we asked our clients to go short. Today we prefer to use sharp dips (if any) before the release of US September private ADP jobs number to go long in gold and silver with a stop loss below $1245 and $1633.