Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Gold Gets Hit Hard, Goldbugs Buying Opportunity or Time to Panic?

Commodities / Gold & Silver 2009 Dec 09, 2009 - 01:53 PM GMT

By: Claus_Vogt

Commodities

Best Financial Markets Analysis ArticleOn Thursday of last week, gold hit an all-time high of $1,227 an ounce. Since then, gold’s price is down to $1,145 per ounce for a quick loss of nearly 7 percent.

Strong U.S. employment data were cited as the reason behind this move and other fireworks in the financial markets.


After the data release stock prices shot up, but finally closed way below the day’s high. That’s a rather disappointing outcome for bulls expecting a year-end rally to begin soon.

The dollar also caught a bid and rose two cents against the Euro — not giving back this gain later on.

Lastly, Treasury bonds got hit hard, down more than a full point, extending a losing streak which cut 30-year bond prices by four points in as many days, another very sharp move.

The technical pictures of all of these markets were already weak and point to an overdue correction. The release of better-than-expected employment data seemed to be a welcome trigger — but nothing more.

For some clarity, let’s take a closer look at the dollar versus the euro …

A Normal Short-Term Euro Correction

After rising from below 1.30 to slightly above 1.50, or 15 percent in seven months, some kind of a correction should be accepted as normal.

First, technical support comes in at 1.45. If the Euro declines to this level, it’ll mean that nothing spectacular happened, just a normal flow of the tides. Hence, it’s not yet time to make much out of this short-term reversal.

After a month-long rise, a larger correction is not a surprise.

Euro Index

Source: www.decisionpoint.com

Then There’s the Amex Gold Bugs Index …

As you can see on the chart, just a few days ago this gold mining index was back to its all-time high of early 2008. It’s the first index having achieved that feat. This extraordinary absolute and relative technical strength is containing a very bullish medium- and long-term message for this sector. I fully expect an outbreak to new highs and more spectacular gains to follow relatively soon.

But a short-term correction beginning at this distinctive point definitely wouldn’t hurt. It’s a typical resistance area. To take a deep breather here could be just what the doctor ordered to get in the right shape to stage the next huge rally phase.

Gold Bugs Index

Source: www.decisionpoint.com

After returning to the all-time high of 2008 some kind of a correction is but a healthy and refreshing move.

Bottom Line: Gold’s Medium-Term Uptrend Is Still Healthy

Finally, let’s look at gold’s price chart. After the breakout of this huge consolidation formation at approximately $1,000 an ounce, a fast uptrend followed, lifting gold’s price by about 20 percent.

This very healthy trend does not exhibit any signs of weakening. There are no negative divergences or even short-term trend breaks. This medium-term uptrend is fully intact.

At this stage of the bull market I expect no more than a short-term correction lasting just a few weeks. And I see no change to the fundamental picture, either.

Gold

Source: www.decisionpoint.com

I expect the current correction to turn out as nothing more than a short-term hiccup, akin to the correction of November 2007. It may last a few weeks and bring prices down a bit more. But in the end it will turn out to be just another buying opportunity.

Best wishes,

Claus

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules