After a sharp rally on the back of equity weakness last week, Gold has consolidated above the $1240.00 level.
The technical picture is still constructive as the yellow metal is still above the 30-day moving average at $1234.00 and the RSI reading at just above 56.00.
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There are still many global stock indexes trading at elevated prices. The market has proven that the inverse correlation of Gold moving higher, as stocks move lower, still intact.
We see scope for a test of the $1235.00 level before trading higher next week. Our medium-term target is the November 10th high of $1292.00.
Investors looking to profit on a move higher can look at either the Vectors Gold Miners ETF (GDX), buying the dip in Newcrest Mining down to $22.00, or placing Newcrest Call Option strategies.
