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« Bank of America/Merrill Lynch Medium Term Target of $1500 for Gold Prices | Main | The Tail Wags the Dog »
Sunday
Mar212010

Gold: A quick Look at the Chart

Gold Chart 22 March 2010.JPG


Taking a quick look at the above chart we can see that gold prices appear to be stuck in a trading range for now and may continue to trade sideways until we get some sort of resolution to the European Fiasco. The long term trend is still up so we must learn to expect these knocks along the way. Shortly after gold had risen above the $600/oz level (many moons ago) we wrote that you would never see $600/oz gold again and the detractors fired in the brick bats accordingly, well it wont be too long before $1100/oz is history too.

Here we are at much higher levels and the doubters still abound in abundance. None us know for sure where gold will take us in the short term but we are however confident that gold prices are headed higher and will finish the year at higher levels than they are today.

The question of which vehicle will give us the biggest bang for our investment dollar will remain with us and we will continue to wrestle with it and try alternatives, but there is no substitute for having the real deal in your own hands. We see it as not just an insurance but also as an investment that is as good as, if not better, than any other investment available today.

Back to the chart, please note that the 200dma is still rising and closing the gap between with gold prices which will support gold prices and we see it as being very positive for gold.

The USD has bounced and we note the inverse reaction by both silver and the HUI which have turned down sharply. Various programmed 'stops' have been triggered by the fall in gold prices which added to the selling pressure on Friday, however, by the end of the trading session gold prices were stabilizing.

Well fast forwarding to today all eyes will be focused on President Obama's health care reform bill and how the market reacts to it. We understand that there are last minute changes being undertaken such as abortions will not be allowed on the state, but we will need to see the final draft, if and when it is passed.

Also look out for Thursday, when the European Union meet as we may get some indication as to just what they propose to do about the Greek problem.

Have a good one.

Got a comment then please add it to this article, all opinions are welcome and appreciated.


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Reader Comments (13)

Just in:

WASHINGTON - The Democratic-controlled Congress has approved controversial health care reform legislation that Republicans have warned amounts to a dramatic take-over of health care by the federal government.

The vote in the House was 219-212.

Republicans were unanimously opposed. 34 Democrats joined with the GOP members in voting against the bill.

It now goes to President Barack Obama for his signature.

http://www.onenewsnow.com/Politics/Default.aspx?id=946826

March 21, 2010 | Unregistered CommenterGold Prices

Well i am calling for 320 gold. It is going to be the only asset that will not make a new low, but it will fall a lot from current level. You can see below 500 gold prices with DOW/GOLD ratio unchanged. (actually right now it is flat)
And i see the chart you posted differently. Gold made a new final high at 1220 , sold off on huge volume and now it trades within a range respecting that high. The trend changed and now will last for about 2 or 3 years. Technically it is a very good bear trend, we are making lower lows and lower highs (daily and weekly). When the trend is strong, gold usually doesn't have big volatility and that's what i am seeing now.

March 22, 2010 | Unregistered CommenterDi

Is there now a H&S top that is not perfectly text book. (left & right shoulder taking exactly the same shape)Would be nice if volume was shown. In the rally off the lows of Oct 2008 there was triangle in the middle of the rally & based on the size of the triangle, the rally before & after the triangle the rally looks corrective. Iam short gold based on the rally from the 08 lows looking like a 3.

I do not follow fundamentals but I do not think inflation will be high enough to keep up with expectations. Of course any market historian will understand that using inflation to predict gold price is costly.

March 22, 2010 | Unregistered Commenterdarren

This weeks Commitments of Traders (COT) report is stating that Gold has turned bullish. For those who are interested, the fella who operates this blog digests the futures contracts and gives his point of view on each of the markets...worth the read. Best of luck this week.

http://cotstimer.blogspot.com/

March 22, 2010 | Unregistered CommenterMark

Hi guys,

I love to read your emails and have an off the wall question.
I have been trading for about a year and a half and wanted to know why Banro corporation fell so far down? I'm sure there is an underlying reason, but have not been able to find anything to explain it.
Appreciate some input,
Jeff
Spatec@aol.com

March 22, 2010 | Unregistered Commenterjeff

...another great source of information to follow, if you're interested, is Mr. Don Vialoux of Jov Funds and timing the market.com. He covers seasonality and applies this knowledge to the different sectors i.e., gold, financials, etc...here he is on BNN this a.m. giving a brief overview of said markets.

http://watch.bnn.ca/the-street/march-2010/the-street-march-22-2010/#clip279215

March 22, 2010 | Unregistered CommenterMark

jeff,

Sorry we cant help you with Banro, we just dont know enough about it, however some of our readers may be fans of this stock and hopefully will add their two cents worth.

March 22, 2010 | Unregistered CommenterGold Prices

Di,

$320 gold, where's the coffee pot..

March 22, 2010 | Unregistered CommenterGold Prices

COTs TIMER:

"Gold looks set to remain bullish for up to five weeks based on the COT data."

March 22, 2010 | Unregistered CommenterGold Prices

Di,
Can you shut up and take your B..S..somewhere else...instead of putting some thoughts together for a sensible read, you are just speculating and wasting our time...there are many places where you can take your speculation...I request the owner of this site to remove Di

March 22, 2010 | Unregistered CommenterJack

Jack,

We invite our readers to add their comments whether they agree with us or not in the hope that we can get some balance into the Gold Bull dabate.

To ban people because we dont agree with them is not a good enough reason to do so.

You can have your say and put forward an arguement to support your case and we will publish it, the only comments we do ban are the naughty ones containing improper language along with various spammers.

March 22, 2010 | Unregistered CommenterGold Prices

Di did a good job with her post i.e., regarding the high volume decline from the highs,comment regarding volatility & being in bear trend lower lows & lower highs. I dont like a crowded trade & I did not like seeing another bear though.

Are the commercials normally net short gold? Maybe the most recent data I could find is wrong but based on what I found on the internet. On March 16 2010 futures & options combined (New York Mercantile) the commercials held 218,615 short & 65,723 long. How can that be bullish? Or did the data change since then? I cant remember either platinum or palladium had 17,360 short & 346 long contracts held by commercials.How often does that happen?

March 22, 2010 | Unregistered Commenterdarren

I think I might have made a mistake regarding the numbers for the commercials. The site I found the data on never called them comercials but had another name which I thought were commercials but after further thought Iam not certain if above post is correct?

March 22, 2010 | Unregistered Commenterdarren

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