Gold has been going through consolidation pattern since October of last year when it traded around $1,800 an ounce. The phase is similar to the kind of move the metal made in 2006-2007 according to Diane Alter at Money Morning.
Gold prices hit $725 an ounce in May 2006, and then fell back to around $600 an ounce by September. After trading between $600 and $675 an ounce through September 2007, gold prices jumped to $833.75 by the end of the year -- a 24% jump in three months.
The same scenario is emerging.
After hitting $1,900 an ounce in September 2011, gold prices slipped back to around $1,600 by the end of the year. Gold's been trading between $1,550 an ounce and $1,800 an ounce for about a year.
Another jump like in 2007 would take prices to about $1,970 an ounce in the coming months. And when the latest round of selling is done, this price climb could start.
Gold prices hit $725 an ounce in May 2006, and then fell back to around $600 an ounce by September. After trading between $600 and $675 an ounce through September 2007, gold prices jumped to $833.75 by the end of the year -- a 24% jump in three months.
The same scenario is emerging.
After hitting $1,900 an ounce in September 2011, gold prices slipped back to around $1,600 by the end of the year. Gold's been trading between $1,550 an ounce and $1,800 an ounce for about a year.
Another jump like in 2007 would take prices to about $1,970 an ounce in the coming months. And when the latest round of selling is done, this price climb could start.
More information can be found online at http://www.goldbullionadvisors.com
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