This Could Be the Most Important Gold Pullback Ever To Consider Buying Into – Here’s Why (+2K Views)

Gold sold off hard on the news that a moderate won the first round of elections in France. Good,…because if gold breaks support and goes down to test its uptrend…THAT would be a heck of a buying opportunity.

The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article written by Sean Brodrick (UncommonWisdomDaily.com)

Here’s a chart of the SPDR Gold Trust (GLD), which tracks gold closely. I would really like to buy if gold pulls back to test the uptrend I’ve marked on the chart.

Let me explain what you’re seeing here.

Gold broke out a couple weeks ago. This turned former overhead resistance into what I’ve marked “1st support.” This lines up with the 200-day moving average and it should be strong support for gold.

If we’re very lucky, gold will break that support and go down to test its uptrend. Why would that be lucky? Because THAT would be a heck of a buying opportunity.

The market won’t really turn bullish on gold again until it pushes up through that green line I put on the chart. Good! That means we can buy the metal on the cheap while others dither and sit on their hands.

Really, it’s no surprise that gold pulled back. The market got too bullish, too soon. Sentiment in Bloomberg’s gold survey hit its highest level since last August.

With so much bullishness, the market was ripe for disappointment.

What happens now? ..We are already seeing buyers come in so we may not get the pullback I am looking for but if, I say “IF” we get a pullback to that uptrend? Then you should buy gold and miners with both hands because that will likely mark the beginning of the next Mega Bull trend.

I’ve told you that such a massive rally could take us to my intermediate-term target of $1,540 and higher. Heck, it might not stop until gold hits $2,700!

I’ve told you about the fundamental forces lining up behind gold and miners. Those include:

• declining gold reserves,
• a lack of spending on new exploration,
• a top in the U.S. dollar,
• declining gold grades,
• peak gold,
• rising inflation,
• the ballooning Asian middle class,
• the cyclical nature of gold.
• And more,

but I also said there was one ingredient missing: investor buying and, guess what, that’s changing – and in a big way, too – having already…poured $487 million into SPDR Gold Shares [of late] and now, it turns out that hedge funds are starting to pile on, too with  Bloomberg reporting that hedge funds increased their wagers on a gold rally to the highest level since November.

Interestingly, gold prices went down last November, too, but found a bottom in December, and then it blasted off up 14.5% to date. That’s a huge move in futures and it kicked a lot of mining stocks into overdrive.

…If we’re lucky, though, gold will zig-zag its way lower…Let it test that uptrend. That would be a great launching point. It could serve as a platform to catapult gold and miners higher.

Conclusion

The fundamentals lining up for precious metals are huge and fierce. In the months ahead, fortunes could be made on the right investments, and that’s why this could be the most important gold pullback you will ever consider buying.

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