Gold Chart – Trading Update

On Dec. 7, I wrote Re; GOLD

I believe that the huge run-up which begun at the beginning of September at US$950.00 has been too steep and too fast, having risen US$275.00 in just slightly over three months. Today’s price drop to US$1159.00 at the close of markets may well mark the beginning of a retracing of these huge moves and possibly see the price of GOLD drop down to the 200 day moving average [blue line] to the US$ 980.00 to US$1000.00 level.

Since that writing the price of Gold has dropped to just under $1090/0z. Reviewing today’s chart I notice that both the RSI [above chart] and the MACD [below chart] indicators are both registering over-sold numbers. Therefore we may expect a small rise over the next few weeks back to perhaps the 1150 level. It is however, my personal opinion that the overall trend in the price of Gold is now downward and that the roll-over which began on December 1 will continue. I foresee a continued sell-off to my previously suggested price level around $1000/Oz which is also at the 200 day moving average [blue line].