Archive for 06/04/2011

Maybe not!

One day can make a big difference. Before yesterday, gold was looking tired and ready to take a break. Yesterday, it broke through its all-time high on strong volume. It’s hard to say why exactly. Some possible causes were the Fed meeting minutes, the Moody’s downgrade of Portugal and the raising of bank reserve levels by China. Oddly, the Euro popped up again to recent highs.

Silver made it easily through $39 and looks like it might head all the way to $41.50. Or, both gold and silver could take a break here for a couple weeks.

Here is a site that maps out the near future in gold:

http://thetsitrader.blogspot.com/2011/04/fibonacci-gold.html

This projects $1639 in June. Fibonacci relationships are open to interpretation but the good thing about this analysis is that it covers a long time period with several stages, so the overall relationships are more reliable.

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