Gold Undervalued

Gold prices are gravitating around the lowest levels since October 11, which marks 8-month low for the precious metal. This could turn out to be a reason good enough for investors and long-term traders to get into a heavy position and keep adding to it, given that Gold would once again be regarded as a preferred investment.

Gold is more of an undervalued asset right now and market participants would soon start to allocate some of their fund into it as they always have. Gold prices have been declining for quite a while now, we are at a critical level of support. If we break that $1,140 level we might see a quick wash out down to $1,125 and even possibly $1,100.