GO
Loading...

Why Gold Bulls Have the Edge: Pro

Gold is gearing up to make a huge move one way or another. So which way will it go?

Buyers continue to test the crucial level of $1,422. In the event that $1,425 prints, shorts and those standing vigilant should briskly drive prices back above $1,450, sending gold on its way to test the multiyear low of $1,523. Not too long ago, gold sliced through that low like a hot knife through butter.

On the other hand, if the gold bulls (or the gold bugs) can't get $1,425 to print, the bears live a bit longer.

(Read More: Gold Rises After US Jobs Data Misses Forecasts)

Getty Images

However, as Japan, the European Central Bank and pick-your-central-bank all continue to stimulate, the goal of inflation will be achieved. Of course, central bankers who have never traded the markets and don't truly understand momentum will most likely swing the pendulum too far. Inflation is not a matter of "if"—it is just "when."

In the short term, traders must stay focused on the data, as unemployment—or "unenjoyment"—this Friday will dictate the short-term path of gold. But it is critical to respect the technicals as we trade this volatile commodity.

(Read More: The Chart Will Reveal Gold's Next Move: Pro)

_ By Jeff Kilburg, CEO & founder of KKM Financial. Follow him on Twitter @TheKillir

Watch "Futures Now" Tuesdays and Thursdays at 1 p.m. EDT exclusively on FuturesNow.CNBC.com!

Like us on Facebook! Facebook.com/CNBCFuturesNow

Follow us on Twitter! @CNBCFuturesNow

Featured

Contact Futures Now

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.