Gold Chart Update: Where Is The Gold Market Headed?

by The Smarter Wallet on August 15, 2009

Are you trading spot gold or investing in gold? If so, then check out the latest on the gold market!

If you’re a gold investor or trader, you may be pretty frustrated with how the market in this precious metal is behaving right now. It seems like this market has been a little harder to call, according to some expert traders whom I’ve been following. Here’s what the 60 day spot gold chart currently looks like:

60 day spot gold chart

According to the people who have been tracking and trading this particular asset class, this market doesn’t seem to be particularly cooperative right now.

Gold Chart Update: Where Is The Gold Market Headed?

The Fundamentals. Now it’s been reported that gold futures have dipped recently in response to a very sharp decline in U.S. consumer prices; CPI data is showing the sharpest decrease in close to 60 years, thereby making it less attractive for investors to seek refuge in investments that hedge for inflation. If the consumer prices are low, the threat of inflation is low, and therefore demand for gold as an alternative investment also falls. This is how you’d interpret things fundamentally — our investments respond to economic events and to data and information we receive on a regular basis that reveal something about the health of our economy.


On Technical Analysis. But I’m also curious to see how technical analysts, chart readers and traders are reading the gold market right now. They do so by carefully inspecting the gold index charts of the last few months and by making some interpretations based on technical trading indicators. For instance, here’s Adam Hewison from INO.com, lamenting the momentary collapse of gold price levels in recent days.

Click this link or the image below to watch the video:

gold chart update

Adam Hewison thinks that for gold to really make any meaningful moves upwards, it needs to break through the 1,000 level, which at this time, seems pretty far from likely. What his video shows is that some traders were caught off guard by gold’s sudden dive in late July (last month) so much so that they had some positions that they had to close immediately in order to avoid incurring a trading loss. This just shows that if you’re going to trade, you’ll have to think on your feet and make decisions quickly in order to sidestep any losses.

The MarketClub trading software that is used in the evaluation and technical analysis of the XAUUSDO or spot gold chart demonstrates the use of weekly technical indicators that track trading trends and daily indicators that monitor market timing opportunities. Using these signals, traders suspect that the gold market will remain in the defensive for a while. If this is the case, you may want to ask: how low can gold go? The MarketClub trading tool has a Fibonacci feature that allows you to predict the possible levels gold can go based on market trends — the target low point for the spot gold index right now is 924 (it’s currently at 947). If the index is able to move lower and actually touches the target price point, then this may actually spell an excellent buying opportunity for traders and investors alike.

If you’re interested in learning more about trading, you can check out some of INO.com’s free tools: you can sign up to get access to their free trend analysis tool or subscribe to their no cost video channel, which will provide you with free videos on investing and trading.

For more on INO.com’s trading videos, please visit our other articles:

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