Gold Update.

Gold moved as expected.

In our previous post dated 9th July, 2012; we recommended to buy Gold at 29,300 with the targets
31,500, placing stops at 28,900.

As evident from the daily chart above, Gold moved as anticipated.

From the current levels, a valid breakout above 31,500 can take the prices to an extended leg at the levels of about 32,850. However, the ongoing 5th wave might end here itself. Hence, one has to be very cautious to create a fresh long position.

Considering the Diwali festival in mind, history is evident that Gold prices has always shoot up around this auspicious Hindu festival. Hopefully, history might repeat itself and the ongoing 5th wave may extend a leg up to the above mentioned targets.

To summarize, be sure of a valid breakout above 31,500 and then enter into buy position placing stops at the levels of around 31,000.

Analysis by: Team Koyostocks. 
Our website: www.koyostocks.com