Gold tops $2,600 as the bulls seek out the next leg higher

Up, up and away for gold? The bulls are certainly looking poised and are angling for the next leg higher now as we approach European trading. Price is running above the $2,600 mark to fresh all-time highs as the post-Fed musings continue to play out.

Traders are starting to push odds of another 50 bps rate cut by the Fed in November and that is a tailwind for gold.

The run higher in gold this year has been quite unrelenting. The precious metal is up a whopping 26% year-to-date already. I’m an advocate for higher gold prices but the more this carries on, the more I feel that we’re overdue for a violent and sharp correction at some point.

In the big picture, overall sentiment remains largely positive for gold at this point. But I would definitely like to see a retracement of sorts all before we get to the seasonal buying rush in December to January. So, we’ll see I guess.

This article was written by Justin Low at www.forexlive.com.