Saturday, March 17, 2012

Gold bottoming......?

Is Gold nearing the end of the slow, non eventful downturn since late Feb?  It is close to the bottom of the range that it has been in since August of 2011.  If you look at the Seasonal Gold price over the last 30 years, March has not been a bullish month.

As far as the current technicals, Gold is near the oversold area for the RSI and Slow Stochastics.  Most investments that are oversold will get a bid and go on a rally, but for how long?  And how much?  People that are trading the PM's may be looking to accumulate a position near these levels for a certain % gain within a few weeks/month(s).

A chart of the 'evil' GLD w/RSI and Slow Stochastics.  See the oversold areas that are circled in red and the rise in price within a few days/week.

April and May are better months for Gold based on the historical monthly prices.  The markets / traders were looking for the Fed to announce QE3 (or whatever they are going to call it) which they did not do.  This took some of the wind out of the sail for Gold.  But based on technicals and seasonals, Gold may have a bullish run going into May. Will it test the all time high of $1923???

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