Gold continues to hover around the $1,200 level these past couple weeks on fears over Greece and its ability to satisfy its creditors.
The bulls and bears continue to do battle in the gold (GLD, quote) market but neither side seems to be winning. Albeit the bears have edge out the bulls for the year, since peaking on January 22 at $1,307.80. The bears have defended $1,200 level ever since.
Even with the Greek government’s lacking ability to reach an economic reform agreement with its international creditors that is required to access the remaining bailout funds the price of gold remains right at the $1,200 level.
To answer all those questions I’ve been receiving on would I buy gold here? The answer I personally would not…not even with the upcoming May 12 payment deadline of 780 million euros to the IMF.
If Greece fails to make the payment it could lead to the exit of Greece from the euro zone but haven’t we heard this song before?
Before even considering getting long gold I want to see a close above $1,225 resistance level. Even then I want to define my risk by looking to the option market for exposure to the gold market.
Bottom Line: There are so many other places to make money right now that gold is just not on my radar for the time being.