LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Gold Update


 -- Published: Tuesday, 9 February 2016 | Print  | Disqus 

By Roland Watson

 

Gold has been on a roll these past few weeks as it has rocketed from the lows of $1046 on December 3rd to a high of $1200 this past day. That is an advance of 17% and doubtless many are wondering if this is the start of a new multi-year bull market for gold (and by consequence, silver)?

 

As things stand, gold may be about to encounter some headwinds. First, we look at the channel that gold has been descending gently down since August 2013. As you can see, gold has touched the top channel line three times in that period only to fall back to the lower line of the channel.

 

 http://goldseek.com/news/2016/Gold%20Channel.JPG 

 

Obviously, this ping pong cannot continue forever. Gold is either going to break through the top line or drop through the bottom line. So, the odds are that gold will touch the upper line at about $1212 only to fall back. But, will this mean gold will automatically drop back to the bottom channel line for a fifth time somewhere in the region of $1000?

 

To put this in perspective, how far have the previous bull runs within this weekly channel ran? These are tabulated below and should be compared to the current run up of 17%. In this light, a 17% run is not indicative of what may or may not lie ahead. However, an anticipated run of 100% or more cannot start unless it first advances 17%!

 

 

    PRICE RUN                        DATES               GAIN

$1180.20 - $1433.73         24/06/13-26/08/13        21%

$1182.35 - $1388.54         30/12/13-17/03/14        17%

$1130.02 - $1307.64         30/11/14-19/01/15        16%

 

May I also offer an opinion on the 200 day moving average which has been breached by this current move? This average has been breached three times previously while gold has been bounded by this weekly channel. The truth is that moving averages are not good technical indicators when the price action is whipsawing in this manner. What we need to see now is gold breaking through this upper channel line, but also presses on.

 

By that I mean, the last two and half years have been a continuing series of lower lows and lower highs. So, let’s see if gold can take out the previous high of January 19th 2015 when gold hit $1307. When that happens, gold would have moved 20% which technically constitutes a bull market and then perhaps we can begin to talk about a serious bull market in precious metals.

 

 

Further analysis of silver can be had by going to our silver blog at http://silveranalyst.blogspot.com where readers can obtain subscription details for the Silver Analyst newsletter. Comments and questions are also invited via email to silveranalysis@yahoo.co.uk.


| Digg This Article
 -- Published: Tuesday, 9 February 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.