Gold:Top Or Just The Beginning?

Posted on Fr 07 Dezember 2007 in misc • 1 min read

  • Economy
  • Forex
  • Futures
  • Trends tags:
  • Gold meta: podPressPostSpecific: a:6:{s:15:"itunes:subtitle";s:15:"##PostExcerpt##";s:14:"itunes:summary";s:15:"##PostExcerpt##";s:15:"itunes:keywords";s:17:"##WordPressCats##";s:13:"itunes:author";s:10:"##Global##";s:15:"itunes:explicit";s:7:"Default";s:12:"itunes:block";s:7:"Default";} _aioseop_keywords: Gold, Double Top, Fundamental, Top, Breakout dsq_thread_id: '181042634' author:

    Babak posted about a possible double top forming in Gold (and Oil) in his blog a few days ago. While I agree with his technical analysis on the daily charts, I disagree with his conclusion that Gold has topped out. In my mind, Gold is driven 80% by fundamental reasons instead of technical analysis. If you look at the weekly chart, Gold looks poised to possibly make a run higher after this consolidation.

    Anyone can argue over technical analysis but in the end I believe that Gold is driven by fundamental reasons for one critical observation I make. The longer I trade Forex, the more I begin to see Gold as a currency rather than a commodity on the open market. Since all currency prices are driven by fundamental and sentiment forces mainly and based on the macro economic conditions we are experiencing globally, I believe that Gold will indeed move higher from here.

    Then again I could be wrong and Babak right. After all, these differences in perception and value is what makes a market. :)