Precious metal investments: news, consultancy, trends, reports & more!
HomeMarket WatchHard AssetsInvestor's GuideDownloads
 

Gold's Sharp Correction
Could Propel it Much Higher Later?




If we examine the charts, then we will notice quite easily that the mid-April 2013 crash of gold has been the largest in terms of percentage since 1980.

More exactly, if we study the charts for the 2000 - 2013 period, then we will conclude that gold has climbed much higher after each dip that occurred. The gold downward corrections actually acted as catalysts for later spikes.

Lots of "gold bugs" and investors, traders who are firm believes of the fact that "gold is not in a bubble" still believe that gold will correct sharply and rise above the level it has crashed from. We will then have see

As we've seen since mid-April, gold shot-up more than 100 $ after the minimum price of 1,360.60 $ per ounce. Mainly due to Asian physical gold demand spike, as Prime Values has reported last week.

In early May, the metal has been trading primarily sideways.

An article posted on AheadOfTheHeard.com depicts graphs, presenting the dimensions of each dip and the rather quick recovery afterwards.

Gold can indeed recover. It all depends whether there are enough bullish forces to propel it much higher after it hits "rock bottom". Speaking of this, you might want to check out the article about how to pick gold bottom in order to invest at the lower price.

Obviously, as gold enters a downward trend, then the corrections will be upward and the main impulses downward.
So far, this dip has been called a correction, because gold has been on the rise for many years (that being the long-term upward trend), then it fell back.
If the price fall continues, then that itself will become the trend (pointing downwards) and any upward jump will be considered a correction.





comments powered by Disqus

 
Prime Values on FacebookPrime Values on Twitter

about us    terms of use    privacy policy    disclaimer    partners    advertising    contact us