Spot Gold prices reversed off a 4-month high of $1232 as the FOMC minutes suggested that the US FED is prepared to lift overnight rates up to 5 times in 2018.
The yellow metal has rallied over $80.00 over the last 3 weeks and has gained in 14 of the last 16 trading sessions. The internal momentum indicators are now in “overbought” territory which warns of a downside correction.
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Much of the recent rally was supported by the notion that the FED would take a less aggressive monetary posture, which would weaken the US Dollar.
We maintain a bullish outlook for Gold but would look for a pullback to re-enter into long positions.
As such, we suggest taking profits in NCM in the $23.20 area and look to buy back at or near the $22.60 level.
Newcrest Mining
