Gold has been trading in a 3 month price consolidation and is currently testing important support into the presidential election.
This consolidation is likely to either break higher on strong volume (perhaps the catalyst will be the presidential election on Tuesday) or break lower below support at $1850 (note support band $1850 to $1860). And, to be fair, a break lower could have the same catalyst.
In any event, I am taking a long trading position in the December Gold futures. We have well defined support at $1850 so I will use this as a stop. If all goes well, we could see $2005 as an initial target, with $2180 still standing as a potential upside MOB target. With all the news events and volatility, new gold trades need trading stops to define risk.
The author has a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
