How To Read The Gold Price
In today’s video update, Resources Analyst Jason Stevenson goes into detail on how to read the Gold chart.
(Click play to watch)
In this video you will learn:
- The difference between the 5 year weekly chart and the monthly chart for Gold.
- Support and Resistance levels for the USD Gold Price
- Why Gold is in a long term bull market.
- Despite the recent uptrend, gold is in a short term bear market dating back to 2011.
In a brand new investor report, Resources expert Jason Stevenson reveals where gold is headed in 2016 and why you should avoid gold stocks.
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Jason Stevenson: Hello, I’m Jason Stevenson the Resources analyst for Money Morning and Resource Speculator. You may have seen the Facebook update from yesterday talking about the gold chart. Today I want to expand on that chart and provide another chart and more information for you.
If we look, if we’re looking at the five-year weekly chart in gold we starting with the high in 2011 at 1900 per ounce the low frankly enough was at 1307 dollars per ounce as you can see with the blue line that’s
the resistance level, the pink line is the support level which i showed you yesterday.
Over the last five years the gold pricehas been hovering between these two levels, for example in 2013 when you saw the huge sell-off from 2012 following Mario Draghi coming to the rescue of Europe, that came down and breached the pink line for support.
Recently we’ve seen gold in an uptrend earlier this year from its low in December 1060 dollars last year when the Fed raised interest rates for the first time in years. Last week the market was caught by surprise from
the Brexit and gold surged one hundred dollars in one day per ounce hiting that high 1360 per ounce.
Previously on a Money Morning article I thought based on my previous analysis that the resistance was would form around 1385 per ounce. It appears that that was not the case and it appears that gold, the true resistance is now around 1,360 per ounce.
What this is telling you is that for a bull market to truly take off we need a weekly closing above that blue line to signal that potentially gold could be in that bull market state.
However at the moment there’s no indication to show that gold is in a bull market and that is why I’m still bearish on gold and believe that we’ll hit 931 dollars per ounce.
So what I expect potentially in the months ahead is to go for goal to swing and swing around and come back down to the to crash below the pink line. The reason why I say that is because from the Brexit we’ve had the Pound now see sell-off significantly we’ve got the Euro see a sell-off.
We’ve got emergent currently side and sell off and the US dollar is starting to rise as the US dollar starts to rise you should see more pressure putting against the gold price in the months ahead and that may say gold dipped below the thousand level.
If we can move to the monthly channel this is the monthly chart for gold as you can say gold is in a long-term bull market dating back to 2,000 into that is when gold broke out from it’s 1999 little load the Green
Line shows that the majority of support actually hovered across that line monthly that’s based on a monthly closing we can see here on looking at the blue resistance and the pink support lines dating back to 2011 behind the low in that year that there’s been I support along that line and resistance so what I expect in the months ahead.
If I’m correct is that with the US dollar getting stronger and a contagion event happening in Europe you may see goal which is an asset and not money sold off coming down and hanging below the pink line potentially
passing off this green line before the bull market starts the global market starts thank you.
Thanks for watching, if you want to learn more about gold stocks and where that will be going in the next year click the link below.
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