Dollar Down and Gold Up

Its 6.00am UK time and the USD is drifting south in Asian Markets as the above chart of the dollar shows and inversely gold is heading north to trade around the $1107.60 and silver is also shaking a leg up $0.21, as we write.

As we mentioned on the 10th February 2010 when gold was sitting at $1076.70:

In recent trading, gold prices appear to have made a declining wedge formation, which is good news for gold bulls since a falling wedge formation after an uptrend usually means a break out to the upside, rather than one to the downside. In addition to this, technical indicators such as the MACD, STO and RSI are in oversold territory. So whilst there could still be some sideways action ahead, it appears that the worst of this correction is over and an excellent buying opportunity is upon us.

So we now have gold pushing up against the top of the channel of the declining wedge and hopefully it can break through and set us on the road to another rally, which would lift stock prices and set fire to our Call Options.


All the best.

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Comments

[Di]

but monthly gold has a 3-year rising wedge formation which means break to the downside. since gold hit 1200, it is now in 'sell on bumps' mode. next week should be good for shorts, traders will not allow it to close the month with a positive candle.

[Ryszard]

On a general point, at the end of your article are references to related articles, that's a good idea, my question is should they be closer in date and therefore more relevant to the current climate. Ryszard

[Gold Prices]

Di,

We think that we will be looking good by the end of the month and beyond, but you knew that anyway.

[Gold Prices]

Ryszard,

Its a good point that you make, so far we have not been able to come up with anything better, but we will keep looking to improve the site.

[Vincent]

Di, if it is not too much to ask can you provide the name of the strain you smoke and perhaps the seed bank where one could purchase it. I do not want to change my reality, quite the opposite,...Just want to treat myself for the great start to the new year and enjoy the REALity,...P.S I'll be thinking of Bob and the rest of the crew at Gold-prices. As always great work fellas