Where Is Gold Heading to?

I am a firm believer of investing in gold.

Having been investing in gold since 2002 (Tocqueville Gold Fund (TGLDX) is my main vehicle to invest in gold though I have also bought a few gold coins in the past couple of years), I was pretty excited when gold broke the key $1,000/ounce mark in March 2008. But since then, gold has been traded down in general.

But then you’d think that with the government printing money at a record speed to finance the stimulus and recovery, gold could easily retake the $1,000 level and be traded even higher. That didn’t happen until March 2009 when gold did claim back the $1,000 an ounce level as the stock market got hammered by seemingly endless turmoils in the financial market. The rally, however, was yet again a short-lived one, with gold reaching as low as $870/ounce in April. Since then, gold has made another attempt to break $1,000/ounce, but failed (only reached $990) and currently is traded around $930.

Where is gold going from here? Can the precious metal find support at $930 and start to trade higher again? Or is it forming a double-top and going to test recent lows again?

Trading Gold

In this latest INO educational video (more about INO and MarketClub), gold’s recent trade was examined from the technical analysis point of view. Check it out if you also want where gold is heading to.

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One Response to “Where Is Gold Heading to?”

  1. marco |  Jun 17, 2009 at 4:15 am

    Currently several newsletters are pointing to the prospects of a fall in the gold price to $850 during this summer.

    They then say that later in the year, after September the gold price will rise to $1,200 Some say it will rise now to $1,000 first then tumble back to $850 before rising to $1,200 later in the year.

    If it does pull back to $850 prior to a rise to $1,200, then it is clearly an excellent trading opportunity for even long-term investors, with a potential 50% trading profit!