Sunday, January 29, 2012

Gold rally, pull back, rally

Looks like the low for Gold that was hit in late December 2011 may be the low for the next 12 months???  Everyone with a 1/2 a brain is buying Gold now, China, India, central banks, etc...  If you can debased your own currency and purchase Gold with it, wouldn't you do it?   'Print' your own currency, exchange it for US Dollars and purchase Gold.  Legal counterfeiting..... what a joke....

Daily chart of the World Gold Index going back to the high of 1915 that was produced in August 2011.


Looks like it's all green lights to the upside since the sell off to the $1523 level.
It is currently trading above the exponential moving averages of 20, 50, 100 and 200.
The 20ema is about to crossover the 50 and 100ema, bullish.
It has broken through the downtrend resistance line, bullish.
Stochastics are embedded to the upside, bullish.
It is riding along the upper Bollinger band, bullish.
RSI is overbought...  correction will occur...

The $1750 area is the 61.8% fibonacci pullback level based on the last major run-up in August.  We may hit that area, pull back for a small correction back to $1700 and head higher in an attempt to reach the old high of $1915.  We may see this before May of this year...?  Then pull back for the summer months until Aug/Sept rolls around...   We'll see, no one has a crystal ball.  If someone has one, there is a crack in it...

Silver should follow Gold's path to the upside.  The Gold Silver Ratio has been dropping with this early year rally and is current at 51.15 from a high a few weeks ago of around ~59.

The Gold and Silver miners are also rallying to the upside.  Quarterly earnings should propel the stocks higher in the coming 1st and 2nd quarters.

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