2009
Pric of Gold has good chance od breaking below $880
Filed Under (Finance Help) by Admin on 07-03-2009
The price of gold moved through last weeks first level of support at 930, not before spiking up to nearly 988, and then retreating rapidly down again.
As I write, the market is reacting slightly to the 50% level of the price wave that began on January 15th at 801.50 and ended on February 20th at 1007.70. At the moment the upwad reaction to the 50% level seems weak, so I expect that at most, within a few days the market will reach 880.
Support at 880. should cause a more dramatic rise in price. Old support is in this area, as well at the rising trend line and a confluence of several Fibonacci ratios. Short term the market is oversold. Will the support around 880. be enough to send gold spiraling to a new high. Probably not. There is a very good chance that support at 880. will be broken within the next several days or weeks, in which case the 700. level could come into play once again.