Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Randgold Resources Limited: A Buy Shortly | Main | Gold-Prices.Biz tops 9000 subscribers »

Gold Rally Takes A Pause, For Now

Gold Rally Takes A Pause, For Now

Gold appears to be taking a pause for now, having rallied from $950 to $1020 without stopping to take a breath. However although a pause is healthy considering gold's $70 rise, it must not be prolonged as this will kill the momentum in the move.

Looking at the chart above, it is clear that the technical indicators are signaling further weakness in the gold price in the short term. The Relative Strength Index hit 70 and became overbought, and now is dropping back to more neutral territory as gold slips below $1000 again. Similarly the STO is falling and has endured a negative crossover, as has the MACD. All this equals probable further weakness in the gold price over the short term, before the yellow metal can surge up again.

The most important number here is $1033. We view this as the most critical level standing in the way of golds route to $1200 and beyond. Unless this is broken, and soon, there is a high risk that gold will slip away from the $1000 level – and for the third time it will have failed to maintain prices over $1000 for a decent period of time. That would seriously hamper and future attempts for gold to seriously break above $1000.

We do not think gold will fail this time however. We think that even if we are to see some short term weakness in gold at the moment, this will be followed by a serious surge up through $1033 and on to $1200.

However it may be a good idea to wait until $1033 is broken before buying more positions on gold. At present we are holding our main position in our favorite gold stocks and watching and waiting for the chance to deploy some of our opportunity cash.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (2)

I do not own any positions on gold stocks.
1. How can I access your portofolio?
2. What gold stocks can still be a buy?

Your response will be appreciated.


September 25, 2009 | Unregistered CommenterEmtea


Under categories there is a section called Gold portfolio and yes you can access it. However we are not financial advisers so any investment decision is yours alone to make.

September 25, 2009 | Unregistered CommenterGold Prices

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>