Thursday, January 12, 2012

Gold ~ Update ~ 12 January 2012

As pointed out in my last update three weeks ago that, despite the break of the orange trendline, I wouldn't short gold because there is huge support around 1550.

And that's what has happened since then:

We got a huge bounce at the support at 1550ish and are now back at the 1670ish resistance area. If gold can break this area we could see a rally towards the all-time highs at 1900+. A break below 1550 on the other hand should lead to a sell-off to 1420-30.

Just out of interest I had a look at the linear scale chart of gold:

And guess what... there was a perfect test of the orange trendline. So, I guess gold bulls will use the linear scale chart now... : )