Monday, March 21, 2011

March 21st Gold

World Gold Index on March 21st, 2011

Is a 5th time a charm?  Will Gold hit that glass resistance ceiling again and break down under $1400 again?  The last break low was shallow and was slightly higher than the previous pullbacks which is bullish for Gold.
The moving averages are lined up in a bullish pattern with the price higher than the 15, 50 and 100 day moving average.
The MACD is starting to rise toward the center line. 
Stochastics K line has crossed over the D line and heading upwards.

With the US Dollar weakness, Gold may be able to reach the $1500 level in April, 2011.  For Silver, a 40/1 ratio (Which is close to where it is now) will put it at $37.50

 US Dollar Index on March 21st, 2011

Do you see anything bullish about the chart above?  
The price is under the 15, 50 and 100 day moving average. With 15/50, 15/100 and 50/100 bearish crossovers indicated with red arrows.
The price is dropping along the lower bollinger band
The price pierced the last major low on November 4th, 2010 of 75.63.

China holds quite a bit of US Dollars and they are watching it drop. Do you think that they are concerned?  Geitner went to China back in 2009 to reassure them that the dollar was strong.....  I have a feeling that they did not believe him. 

The Chinese have already been diversifying out of the Dollar to buy Gold and Silver, but they have to do it slowly or the dollar will most likely drop dramatically hurting them even more. They have a problem and I'm sure they do not know what to do other than to accumulate more Gold.  The price can only be suppressed so much, so look for huge days to the upside within 1 or 2 years.

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