morbius glass

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Gold doesn’t go bankrupt.

Posted by Adrian on September 18, 2008

Gold has risen from lows of 736 (11th September 2008) to highs of 893 (18th September 2008 – gain of 157). Although the current price spike (17th and 18th September 2008) is the historic aspect, to rise as quickly as it has in a short period of time is impressive. Although note as discussed in The world is most likely in Recession, gold was showing signs of instability in the lower price ranges; so a large rally was on the cards. Of course in light of the now recognized meltdown of Wall Street and the world’s finance sector, the spike in the gold price was exasperated even further; as liquidity comes rushing bank into the commodity markets.

After bouncing off support of 744, gold has now passed over supports of 772 and 837. Now moving into the trading range of 857 and 931. Gold could hit a peak of 900 (short to medium term), with some selling (trigger selling) to occur.

But as long as the USD get’s crushed and bank failures continue in the US and Europe, the credit crisis migrates to a broader liquidity crisis. Gold will continue to be a reliant hedge against a falling market.

Although watch take profit signals.

click on graph for larger image

*please note morbius glass does not give investment advice. The following information is for reference only. Trade at your own risk.


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