Tag: gold

Gold Analysis – A great Risk/Reward Trade in the making

Gold Analysis – A great Risk/Reward Trade in the making

Technical Analysis
The debate between Gold bulls and bears could perhaps be laid to rest in this very clear descending triangle chart from the daily time frame. With Gold having clearly broken the support level at 1283.6, the only way for Gold to head is down south. ECB's monetary stimulus package might have given Gold a short term boost but provides a good opportunity to sell the rallies. In the chart above, the descending triangle gives a target of $1184.86. We notice a minor bullish rally coming into play just near 150% distance to the target. With descending (or ascending) triangles, this is a usual norm, which allows traders to take a more confident trend. The red dotted lines at 1271.75 and 1267.71 is the most likely place for Gold to end its retracement rally. This level also coincides with ...
Is it time to invest in Gold?

Is it time to invest in Gold?

Trading Articles
People'sĀ fascinationĀ and wonder for this 'Yellow Metal' never shows signs of fading irrespective of how high or low Gold is trading in the markets. And this is partly due to the fact that people still consider Gold to be a much better investment than any fancy product our fiat money could build. And as we have seen from the Cyprus banking crisis, even "insured depositors" are at risk should things get any worse. Gold currently is in a downtrend, with prices averaging 1540 (with a further likely drop to 1535/37) for 10 ounces. Refer to the 5 year chart below. It was only two years ago that Gold prices peaked at 1855 (Oct, 2011) while historically, Gold hit rock bottom at 1300 in January, the same year. If we take an average of the high and low prices of Gold, we are somewhere in t

Three Reasons to Still Own Gold (or Finally Buy Some)

Trading Articles
By Steven P. Orlowski, StreetAuthority I recently watched the classic man-eating fish movie Jaws and the latest action in the precious metals space reminded me of the tagline for the film, "Just when you thought it was safe to go back into the water..." Is it safe to swim in the water? Or is Jaws still lurking out there, the physical embodiment of a financial world gone lethal? Can gold still protect us? Gold has had a magnificent run during the past 10 years, doubling in value since 2008 alone. Gold has set and broke several new price records, most recently reaching $1,500 per ounce on the Comex division of the New York Mercantile Exchange in Tuesday's trading. The most commonly-traded gold exchange-traded fund, the SPDR Gold Trust ETF (GLD), followed suit, closing just shy of...

Is gold still a safe investment option?

Trading Articles
Over the past 2 weeks, gold has seen its biggest two day drop since February of 2010. What bull market goes up in a straight line? But, what triggered this drop? It's simple. If investors believe their future with gold is good, then they will buy gold. If investors believe their future with gold is full of warnings than they will not run to the precious metal. What are examples of "warnings? We see plenty of those and we have plenty of worries to keep even the most experienced investor awake at night. Some examples are: quantitative easing, sovereign debt, currency wars, EURO ZONE problems, and a housing market where 1:7 mortgages are in foreclosure; also inflation, deflation, hyperinflation, etc. Has the ECB done enough to fix its ongoing debt crisis? Is the US Economy truly o...