Monday, March 30, 2009

Gold Pops Twenty Bucks, What next? (Chart)

Gold Futures, Daily Chart.

Also see:

GoldCorp (GG) Twelve Times Your Money in Ten Years (Chart)

April Gold 330

Gold futures popped $20 off its lows this morning after stocks opened.

A look at the chart shows that price ranges are narrowing. Something is going to give soon.

From a seasonal demand perspective, the slowest period of demand for gold every year is from Spring into Summer (jewelry, industrial demand). Gold has a tendency to trend down during this period. If gold is going up from here it will take good investor demand for the physical. Demand could come from purchases by the gold exchange traded fund--GLD.

Gold made a monster run at the the end of 2008 into February 2009. The market has been moving sideways from the top.

The market continues to languish which is not a bad sign given the weak seasonal. This market should be watching closely as a breakout of this range is coming soon. The broader trend is still up.
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