Technical indicators are suggesting that a major move in gold is coming. First, the weekly chart of gold futures (see Figure 1) shows that the gold price is near the bottom of a well-defined range of $1550-1800. Thus, a break below the major support level is likely to produce heavily selling – a major move to the downside. Likely, if the support level of $1550 holds, the next move is likely to be sharply to the upside, back to the resistance level of $1800.
The daily chart of gold futures (see Figure 2) shows the behavior of gold price near the key support level, which could give some insights about the direction of the next move. Gold sold off in February as the $1640 support level was broken, which led the price to drop to the major support level of $1560. Next,…>>MORE>>(Seeking Alpha)
Gold is getting a second look in many circles, which is probably no surprise considering the recent rebound in the dollar, the record run of stocks, and the never ending saga of sequesters and threatened service cuts emanating from Washington. This after the precious metal is in the throes of an 18-month sell-off from its all-time high of $1900 in the fall of 2011.
While many have argued that gold has finally found support at $1500, Don Hays, the founder and president of Hays Advisory in Nashville, is not one of them…
…”It’s hard to imagine, but I can’t see gold selling for much more than $1000 an ounce,” this one-time NASA engineer predicts. “Not immediately, but in the next two to three years .” >>MORE>>Yahoo.com
ANDREW GLASS 3/14/13 Politico.com
On this day in 1900, President William McKinley signed the Gold Standard Act, which established gold as the sole basis for redeeming paper currency. The act halted the practice of bimetallism, which had allowed silver to also serve as a monetary standard. It set the value of gold at $20.67 an ounce and valued the dollar at 25.8 grains of gold.
In the run-up to passage of the act, the nation went through a decades-long epic political battle over the relative value of gold and silver — a battle that tested whether one of those precious metals should be preferred over the other in the U.S. monetary system. Introduction of paper currency during the Civil War had complicated this debate because it promised to redeem the money in either gold or silver upon demand…>MORE> (Politico.com)