XEMarkets ₤8500 Forex Demo Contest
for LSE Students
Although February gold finished the day slightly lower, it did have an impressive week. Bucking the pressure from a stronger U.S. Dollar, gold was able to change its main trend to up on the daily chart on Thursday, setting it up for further upside action next week.
It’s hard to pinpoint the exact reason for the rise in gold. Some say it was technical. The inability to break through a major retracement zone at $1669.05 to $1638.15 could have caused short-sellers to throw in the towel and cover their positions.
he fact that the recent bottom on January 4 at $1626.00 occurred at just about the same time the U.S. avoided the fiscal cliff may have had something to do with the gold rally. This move may have lifted the uncertainty that had caused gold to drop from $1800.00 to $1626.00 between October and January.
So now that gold appears to have turned the corner, it may have become investment worthy once again which could launch the start of another rally. A break in the equity markets may make gold an attractive investment since it is an alternative to holding paper. The wildcard is the debt ceiling debate. If this turns into an ugly event then we will truly see if gold investors are serious about taking the market higher.
XEMarkets ₤8500 Forex Demo Contest
for LSE Students
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
