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« Doug Casey on 2009 | Main | The DOW, Gold and the HUI »
Wednesday
Feb112009

Gold Prices Surge Through Second Key Resistance

Gold prices are up over $30 in today’s trading, currently at $944.50. As the below chart (of GLD, the gold ETF) shows, gold prices have broken through the downtrend resistance line (see previous article) and have now risen higher than the previous high made at $936.

Gold Prices Surge Through Second Key Resistance

This is a very positive sign for gold prices. Breaking up through the first resistance meant that gold was out of its downtrend since hitting $1020. Now breaking the second resistance signals that the trend is now up (as opposed to sideways) and gold is looking to challenge its all time highs.

In its uptrend pattern since November, we could see a challenge of $1000 in a couple of months or less. Less appears the more likely option, since gold usually moves in exponential upswings and spikes upwards are more and more likely in the current market environment.

We are also noticing more positive signals in gold, such as the positive moving average crossover (where the 50dma breaks up through the 200dma) that is due any minute now. Also note the building strength in gold illustrated by the rising RSI.

As for our portfolio, our gold shares did handsomely today; AEM is up over 6%, KGC has gained 6%, AUY has done over 9% and GOLD more than 10%!

Hold onto your gold and gold stocks. We are on the move.


If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold and silver.

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Reader Comments (6)

Well , that was a nice update. I too noticed that the downtrend was broken to the upside , but wasnt aware of the second resistance indicating that the move would be UP as opposed to sideways as stated. Gold and the Gold stocks look strong indeed , and I was waiting for a close on a weekly above $920( two weeks consecutively). Question: why is your downtrend line where you have it marked INSTEAD of March High 2008 connect to JULY high 2008 , connect to Jan high 2009???
That was my interpretation ( still broken). Thanks!!

February 12, 2009 | Unregistered CommenterRobert

We'ld like to think, the gold in IMF & World Bank .How about the conditon of that much golkd and how to proceed bailout project of U.S & China.

February 13, 2009 | Unregistered Commenterzulu mike

Sub-article..."gold surges thru 944" etc DATED FEB 11th?????what use is that???why print an article 3 Mos OLD????

May 9, 2009 | Unregistered CommenterR Narveson

Some time ago our readers asked us to group together articles about a particular company so that they didn’t have to search the whole site to see what we had written in the past about that company.

So we came up with the idea of relating articles by the company name, which works well for Cameco as the system then groups together those articles about Cameco.

However for articles of a more general nature the system does not work so well. Hopefully we can improve on it in future.

Best wishes,

Bob

May 9, 2009 | Unregistered CommenterGold Prices

WHy are you giving out Feb 11th gold news???Gold broke thru $944???or was it Feb 11th 1996???

May 10, 2009 | Unregistered CommenterR Narveson

R Narveson,

Please see above reply, many thanks, Bob

May 10, 2009 | Unregistered CommenterGold Prices

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