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Gold Update: The Uptrend Is Back In Full Force
By FastBrokers on March 19, 2009 | More Posts By FastBrokers | Author's Website
Gold is surging after the Fed’s announcement of proceeding with a $300 Billion quantitative easing plan. Quantitative easing is weakening the US dollar extraordinarily, providing incredible upward momentum for gold. Once drifting back into its downtrend, gold has done a 360 overnight. The uptrend is back in full force and the precious metal is currently fighting to get back above the psychological $950/oz level.
If gold should accomplish this feat, we expect to see the continuation of violent movements to the upside for the near-term. A retest of $1000/oz is no longer out of the question, and has suddenly become a reality. Such incredible directional movements have ripple effects so we expect the high volatility to continue for some time.
A fundamental shift has taken place in gold and investors should take notice.
Meanwhile, the precious metal is facing our 3rd tier uptrend line so we could see a little consolidation in the immediate future. Fundamentally we see resistances of $947.12/oz, $950.58/oz, $954.38/oz, and $957.84/oz. To the downside, find supports of $940.55/oz, $937.44/oz, $935.02/oz, and $931.56/oz. Gold is currently trading at $943.95/oz.
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