Gold Price Review

Reviews on spot gold prices, gold stocks & futures, related news and Technical analysis.

Location: Hong Kong

Wednesday, June 14, 2006

Gold made $542 and rebounded

In 2 days time Gold fell from $605 to $542, a large $60 drop which indicated a strong and terrible sell-off atmosphere. The situation was like the final drop, which most of the investors get shocked and decide to cut loss.

However, the gold related stocks in HK (2899,3330) refused to drop. Started off with a day low of -8% decline but end up with a +4% increase. This observation is similar in the case when Gold topped at around $730, where the gold stocks refused to rise correspondingly. This time the stock pattern is similar but in the other direction. It may be a hint that Gold is near its bottom.

Tuesday, June 13, 2006

Gold broke $600 and free fall to $567

A terrible sell off initiated after Gold has missed the $600 support. Investors worried about the interest hike will turn capital move away from gold to bond. Gold dropped a terrible $36 to $567. The $575 target was reached in a single day.

Gold has done nearly a 61.8% correction of the total rise. Further drop is possible but unlikly to break down further below $540, since a Gold bull run normally last for 14 years, and it is only in the middle of the bull run. I have confidence Gold will rise back to over $700, and go over $850 in 2 years.

Friday, June 09, 2006

Will Gold test $600 support ?

The new Fed chairman, Ben Bernanke brought over a thunderstorm to the world stock market. His conversation had always been misunderstood by the audience. In his last speech he revealed that interest rate will increase further in June. This hurts the market as the rate now is already in a critical level to control inflation rate. It has to be done very carefully otherwise the econmony will suffer.

Stock, forex, commodity market all drop more than 10% in 2 weeks time. Gold continues to drop, making a day low $605 and rebounded $10 at the beginning of the US morning session. Now trading at $615.

Historically Gold bull run normally last for 14 years. The current one is running for the 7th year, which a big correction is expected. $600 could be broken, but it doesn't affect the long term uptrend. Personally I think $580-$600 would be a good bet to wait for the next rise.

Thursday, June 08, 2006

Gold broke $620, fell to $610...

Gold fell another $10 after breaking the $620 support. It is now trading at $610.
A 50% correction would be at $590. Just $20 more to go !!

Wednesday, June 07, 2006

Gold touched $620 again, rebound again

According to HKEJ, if Gold price need to adjust the whole increase during the year, a 50% correction could take the price down to around $590, a 61.8% correction could take the price to $560. So chance is high that gold may drop to $575.

Personally I don't expect Gold to drop to that low level, because I have gold stock on hand too (^.^).

Today, gold price reach its lowest at $618, and formed a double bottom. Now rebounded $10 to $628. I would rather it has finished correction at this level and start to climb up again.

Friday, June 02, 2006

Gold touched $620 and rebound

Gold dropped below $620 to as low as $619 today during Asia market session, and afterall rebounded a few dollars immediately.

The rebound continues after a much weaker-than-expected payroll number, raising hopes that the Fed will stop its rate hikes in the June meeting.

Dollars fell further, GPB/USD raised to 1.293 and favoured Gold to jump a little higher to $636 during the US market session.

Short term trading range is still the same, $620-$635, and up one level $635-$670.

Thursday, June 01, 2006

Gold drop below $635, next trading range $620 - $635

Gold broke the $635 support, and initiated another sell-off. The price fell another $20 from $640 and touched $620, now trading at around $625.

Future price is expected to trade within the range of $620 - $635. Some investors start to worry that the Spot gold uptrend has ended, which I think is a normal case in the 2nd phase of the bull run.

It is a test of patience for gold investors. No one knows the future, so always be prepared to handle when the situation is not in favour of you.