Posted by Taki T | September 22, 2014
The gold price dropped on Monday September 22nd to USD 1212 and EUR 942. Dollar gold is close to retest its bottom for the third time since mid-2013, a price level which was seen only in the summer of 2010. For readers seeking to understand what is going on, we are providing a comprehensive view on the gold market. We take all perspectives into account: price and chart patterns, the technical picture, sentiment, the fuures market, physical demand, gold miners, the influence of the dollar, correlation with commodities, monetary policy and inflation/deflation. We also compare several indicators with the low price points in April, June and December 2013.
With 20 different charts, it should be clear that we have only used market data in our analysis. In other words, this article contains the necessary information for readers to put the current gold price decline in its right context and explain the most likely scenarios going forward.
Gold price pattern
The daily USD gold chart clearly shows a downtrend since its top in September 2011, with two large trading ranges. The current trading range, between USD 1180 and 1450, is about to undergo a serious test: the bottom of the trading range is being tested. In case the USD 1200 to 1180 price level does not hold, the gold market is heading (significantly) lower.
Gold is about to test the low of $1180/oz and may form a triple bottom; how do you intend to trade this one?
If you would like to know which stocks we are buying/shorting; please join us at ‘Stock Trader’ our premium investment service.
Subscribe for 12 months with recurring billing - $199
Buy 12 months of subscription time - $199