Correction in Gold

Finally gold showed some sign of correction to its long rally.On charts it has made short term high for sure. the double top formation has actually been formed and the actual price target on the lower side could be around 1500. but i believe it will take a some time to reach those levels and there is short term bounce back that might happen. gold has reached to its Fib levels, that is 61.8 % correction levels of its last move.Moreover 100 dma at 1630 levels would also provide considerable support. if that breaches the next support would be 1575 and then 1500.

Commodities at historic highs

Commodity markets have reach to their historic highs. but will commodity prices would sustain in such low growth environment. Societe general depicts tht commodity prices might show some correction with such level would be difficult to maintain

Correction in Gold

FInally we saw some correction in Gold, but is it the reversal we were waiting for. i dont think so. Gold is in bull phase and to play a bull market is to buy the dips. i think 1725 to 1700 will give a very good entry.

Correction in Gold and Silver

Gold broke its long term trendline, which is bearish for Gold. Gold can spike up to test the trend line again but upside is limited unless it crosses that trend line. A lot would also depend upon the greece bail out. any systemic risk can push gold higher

Silver is also bearish. after making a Traingle pattern on the charts .it broke out of that traingle on the lower side. its a text book techincials which might push silver to lower levels

Gold Rally

With problems in Euorpe refusing to subside and dollar continuing to weaken, Gold rally doeasnt look ending anytime soon. technically its following a trend line and has nor closed below that trend line in last 3 months. ideally it should test the highs 1580 and then decide the big move on either side.A close below the trnd line might ensue a sell off but 1470 and 1450 levels would be crucial.

Oil and Economy - Different scenarios

Standard Charted provides a matrix which envisages effect of oil on economy and different assets in all the scenarios possible

Source Standard Charrted, pragcap.com

Gold : Cause and Effects

this gold rally has left many perplexed. i believe gold is one of the most difficult products to trade as there are far too many variables that effect the gold markets. USFUNDS have come up with an interesting interactive chart which lists out few variables

Gold - A Perspective

History suggests that gold still has reasons to rally. QE 2 is around the corner as BoJ has already taken the steps towards QE.Technically also 1270 can be a very crucial level for gold and the rally should continue unless 1270 level is broken

Gold Price in bull market

With QE 2 around and major resistance level of 1270 broken on the upside..i believe Gold has a way leg up.

Correction in Gold ?