But for now, "this is a seasonally weak time of year" for bullion prices, he says

"We remain convinced that gold has yet to make its high for the year, and expect an assault on $1,300 to begin in about a month from now," says Sam Kirtley of www.SKoptionstrading.com.

"Despite our bullishness, we are not convinced that buying more call options on gold is the right move for now, since we expect action to the upside to be fairly limited over the next few weeks. Our reasoning for this is partially due to the fact this is a seasonally weak time of year for gold. ...

"We are looking for gold to close above $1,225 to signal that this major rally to a new all-time high is beginning. ...

"If gold were to break down, there is major support at $1,140 and on the 200-day moving average. During this bull market, gold has only remained below its 200dma for a prolonged period of time once, and that was during the financial crisis of 2008 whilst massive deleveraging was taking place and nearly everything was being sold off in favour of cash. ...

"In the short term we see limited upside and the short-term downside being $1,140, with higher prices expected later this year. ...

"Although there may be many great opportunities in gold mining and exploration stocks, this is not our area of expertise and we see no reason to take on the addition risks of mining with no evident reward in the stock price performance to justify such risk."

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