The gold has been trading in a box of 1531.76 – 1820.36 since mid September 2011. There are no signs from the weekly chart which points to a breakout as yet.
On the Daily chart, we can see that GOLD is trading in the 1578.45 – 1606.23 box. Gold has came down 240 dollars an ounce from the high of 1795.10. There are many marketing information going around about buying gold as it is going to hit 2500 dollars an ounce to some even extreme figures of 20,000 dollars an ounce. Just type gold in youtube and you would see all these headlines.
I am not a person likes to predict prices. I prefer to trade what the “current” price tells me to do. If price says buy, I buy and price says sell I sell. Ego and ignorance has destroyed my accounts 3 times. 3 times is enough!!!
I do agree agree that gold will someday go up but due to its nature in affecting economies, it is also manipulated. Thus it is not that easy to just say gold will go to this price straight away.
Based on the monthly chart above, we could see clearly that GOLD has been moving in a parabolic move. Open any technical analysis book and you will see what comes after a parabolic move. A big drop in price. this explains the drop we are seeing. So remember the ranges given earlier and……..
Do not trade based on Future. Trade in the NOW!