Is The Rally In Gold Over

Is The Rally In Gold Over  

Over the past few months later, a huge rise in gold prices has stalled, many traders are talking about gold's rally over, do finished! Reality, when you look at the chart of gold to do anything the last few months, there are warning signs, but is running on the gold bull market is really the end?

I have seen on television more and more scholars and gold rally's death. There are also a few basic parameters, some of which are reasonable, I must say. However, there are good reasons to believe that they are wrong again rebound death. After all, every time we hear this - Gold ended higher. This has been the case for 11 years now, sending gold reasons, in the first place has not changed much.

Complaints rebound dry idea that inflation will not happen soon. However, if you fill your tank with gasoline in the past eleven years at any time, you know this is not true. Also, I assume that in this period of time, you buy groceries, so you will be more clear. However, the U.S. government measure of inflation, "the former energy and food" for the large number of calculations. In other words, they just shift around the idea of ​​inflation. CPI number changes. A good example, which is used to include a certain amount of protein steak. Now, it's hamburger. Why? Because cheap hamburgers, helping to mask some of the inflation rate.

Equation positive side, there are a lot of things, so I believe that gold will continue to rebound in the longer term. The first thing of course is the fact that the metal is $ 250 an ounce, when it all started in the order. Even in the recent low prices, we are still up $ 1,300 an ounce in just ten years. Think it is this: How would you feel if you bought $ 5,000 worth of gold it?

Central banks around the world to buy gold and silver. This naturally to bid in the market. (Yes, I'm the first to admit they sold $ 250 and ounce .....) thing, I believe it will continue to push the price of gold is the fact that the central bank actively loose monetary policy, and the various forms of quantitative easing . The main have done, or preparation. This includes the Federal Reserve, the Bank of Japan, the European Central Bank and the Bank of England. Over time, investors will be looking for something beyond the value of paper money.

Looking at the technical side of things, the market has been in a very clear rectangle, in the past 18 months, the $ 1550 level to provide support for the dollar 1800 product resistor. Support a more interesting area seems to be "$ 50 thick" for the $ 1500 level, but may provide a lot of support.

Looking to the future, I think $ 1,500 below the level of the move will prove to be a bear, because it will show a significant failure. However, I think that this area should lead to a rebound, and may return to the $ 1,800 level without much hassle way. If this happens, there are about $ 250 an ounce, while a ton of money in the futures contracts. Nevertheless, I would also like to point out that the consolidation pattern is usually a continuation pattern. I would not be surprised to see a breakthrough in the upside. The only problem is that when ...