Daily chart of the World Gold Index from March 2011.
Gold has been in rally mode since the start of the year as all of the selling for tax purposes was done in December. It has pierced through the fibonacci retracements of 23.6, 38.2, *50 and has stopped at the 61.8 resistance level.
It is trading above the moving averages which are in bullish formation with the 20 day over the 50 and the 50 over the 100. Stochastics are moving lower which may indicate a pullback.
Gold should consolidate here before a potential move up towards the all time high which was hit in August / Sept last year. Once this move is achieved, the Gold and Silver stocks should follow and may present some nice areas for profit taking before the seasonal summer downturn / consolidation.
It is trading above the moving averages which are in bullish formation with the 20 day over the 50 and the 50 over the 100. Stochastics are moving lower which may indicate a pullback.
Gold should consolidate here before a potential move up towards the all time high which was hit in August / Sept last year. Once this move is achieved, the Gold and Silver stocks should follow and may present some nice areas for profit taking before the seasonal summer downturn / consolidation.
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