Gold's trading range has been fairly large over the last year and is equal to the 2008/2009 years as seen in the weekly chart below. (Box trading range height)
Gold hit a all time high in Sept 2011 of $1915 and a few months later (Dec 29th), hit a low of $1523. A difference of $392. Quite a range wouldn't you say? Savvy traders that went short over $1900 and covered in late Sept's selloff around the ~$1600 area made a few bucks.
Those that are invested in the PM market should get used to the volatility going forward as it's going to increase. When Gold is at $1900 an ounce, a 5% move either up or down in one day is $95. It's a day traders dream to have this type of range...
As mentioned in the previous post, having a long physical position and a trading account may be the best of both worlds as far as investing in the PM markets. You can view the short term swing trades as your part time job as it does take quite a bit of technical analysis work and timing. It may not be fore everyone, but I would rather have this part time job rather than working somewhere...
Gold hit a all time high in Sept 2011 of $1915 and a few months later (Dec 29th), hit a low of $1523. A difference of $392. Quite a range wouldn't you say? Savvy traders that went short over $1900 and covered in late Sept's selloff around the ~$1600 area made a few bucks.
Those that are invested in the PM market should get used to the volatility going forward as it's going to increase. When Gold is at $1900 an ounce, a 5% move either up or down in one day is $95. It's a day traders dream to have this type of range...
As mentioned in the previous post, having a long physical position and a trading account may be the best of both worlds as far as investing in the PM markets. You can view the short term swing trades as your part time job as it does take quite a bit of technical analysis work and timing. It may not be fore everyone, but I would rather have this part time job rather than working somewhere...
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