Gold (XGLD) Technical Analysis September 1st, 2010

Here is the chart of the World Gold Index (XGLD) since May of this year with a current price of $1248 on Sept 1st, 2010 at 08:30am PST.    (Click on the chart for a larger view)

• Gold has made higher highs and higher lows since the July 28th low at 1155. Bullish
• The price is above the three moving averages of 15, 50 and 100. Bullish
• The 18 dma crossed over the 100 dma on 8/16/10. (Indicated with a white arrow) Bullish
• The 18 dma crossed over the 50 dma on  8/23/10.  (Indicated with a white arrow) Bullish
• The 15 day moving average is above the 50. The 50 day moving average is above the 100. Bullish 
• The MACD Histogram is above the center line. Bullish
• Both Stochastics K and D lines are above the 80 level and are 'embedded'.  Bullish

It is the 1st day of September and as expected, Gold is still in an uptrend that may be due to the seasonal aspect as well as worldwide financial uncertainty. Because the Slow Stochastics are 'embedded' or 'locked in', pullbacks in Gold can present a buying opportunity for those that believe that it still has upside potential. Gold's all time high was produced on June 21st at 1266.50 and at it's current price, it is only 18.50 away from reaching that level. If the upward trend continues, we should see a new high produced within the near future.