In my last post I presented why I have bearish approach to the stock market. This situation encouraged me, to look for other possibilities where to invest money. One of the assets, that look very promising for me, is gold.
In June, gold futures gained more than 4% and nearly 11% in first half of the year. In my opinion it is a very nice result. However it is obvious that we won’t take any actions until we take a look at the chart.
After strong gains in first quarter of year, a correction took place. At 1st May we had a minimum, which is still possible to be tested. However currently SMA15, SMA 30 and SMA 50 start to go up. The maximum from 22nd May is broken and now we are about peak from 17th April (near 950). Today’s session shows that gold probably has to make a small downward movement and then will attack this level again.
Currently I keep a small package of gold certificates (they are available on Warsaw Stock Exchange) which I bought few days ago at 902. Breaking 950 will be a good signal for me to put more money into gold. For sure I will keep watching gold and post about it regularly as long as it looks attractive.
Gold will continue to attract increasing monetary demand and the result will be a much higher price,” said Peter Spina, an analyst at GoldSeek.com. “Sub-$1,000 gold days are drawing to a close [and] by the end of this year, I would find it difficult to explain a sub-$1,000 gold price.
July 12th, 2008 at 4:45 pm
[...] Gold continues to behave as I expected. On Friday, gold touched the resistance – half of black marubozu from March. It is very likely that now, there would be small downward movement before breaking this resistance. Then I expect to find it at least near $1000 an ounce. Of course I treat gold as a long term investment and further actions depends on market situation. [...]