The moves in the gold market during the past month have been insane. We've seen a false breakout, a crash and then a false breakdown. It all comes down to where you close the period. The fact that gold rallied back to its pre-crash peak is quite encouraging. It recovered all of its losses and got back to its previous point. Therefore, that's reason for great optimism. While the volatility has made it difficult to get a bead on the market's direction, the trend remains upward. Jordan says it could still go a bit lower, but after the retest it will likely head much much higher.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.