gold is having trouble with that 387 level !
Gold seems to be closed today at $387, which is a great result. From the livegold.html chart at Kitco.com which you referenced, it does seem that there is strong support at $383 and considerable resistance at $387.
Since Monday, some of those spikes down and back up are going pretty wild.
According to Forbes.com, gold rallied on Friday with news from the G7 summit that the limitation on central bank gold sales would likely be extended. http://www.forbes.com/home_europe/newswire/2003/09/19/rtr1086947.html
Expectations of a lower dollar should boost gold.
http://news.ft.com/servlet/ContentServer?pagename=FT.txt/StoryFT/ FullStory&c=StoryFT&cid=1059479998726
Gary North offers some thoughts regarding the economics of gold: http://www.lewrockwell.com/north/north209.html
Of course, none of this stuff is technical analysis. It is all fundamental analysis stuff, based on the premise that changes in the price of a commodity result from factors like supply and demand which are in turn driven by other choices being taken in the economy.
As far as technical analysis goes, I have no idea.
Is there a pennant formation? A cup? A cup with a
handle? Does it matter if you look at the chart from
6 months out, or 10 years out, or 20 years? It all
seems like cloud watching to me. ("There's a cloud
that looks like a fuzzy bunny!")At the same time, I think it will be a while before gold returns to prices anywhere below $370. There seems to be a lot of support at various places below $380. As with others who have posted to these lists, I think gold will likely see $420 or higher by the end of this year. We haven't seen that territory since the end of 1995 or so.
Given the overall chart for the last 10 years, I'd expect a rally going up considerably before gold turns bearish. What we can't guess at is whether the central bankers will turn the spigot on sales back on again and start dumping gold, or pretend gold (e.g., special drawing rights) back on the market.
Regards,
Jim http://www.ezez.com/
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