Gold Price Update

In my last post on the gold price I said the action was looking quite weak, and that it could probably hit $667 or even lower before bouncing. Well, unusually, it looks if I was right! Gold hit $667 today, and bounced up a little. If it doesn’t bounce back hard, it may well drop further.

gold110506.gif

It does look quite unstable at the moment, and the MACD still hasn’t dipped into negative territory. Support below $667 is $640, so I’m not looking forward to it dropping if it does. In this eventuality keeping an eye on the long term situation is key, as the fundamentals of the gold market are still stacked to the upside, something that’s not likely to change soon.

dollar110506.gif

The Dollar has been on a bit of a bounce lately, it remains to be seen if this continues. If it stalls, look for gold to benefit. If it continues to strengthen, gold will have a tough ride.

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1 Response to “Gold Price Update”


  1. 1 David Wozney May 11, 2007 at 7:54 pm

    A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.


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