Gold Corrects After Challenging Record High

On Tuesday, March 8, gold futures traded to an intraday high of $2078, roughly $10 below the all-time high of $2088, which was achieved in August 2020. The current decline in gold is the first real price decline since January, when gold hit a low of approximately $1780. Until Tuesday of this week, what followed in February was a dynamic rally resulting in gold gaining approximately $300 when gold traded to $2078. On Wednesday, March 9, gold opened above Tuesday’s closing price of $2043 but closed dramatically lower, resulting in a price decline of $72. Tuesday’s strong decline resulted in gold losing 3.49% in value, the largest single-day loss in 2022.

As of 4:45 PM EST on Friday, March 11 gold futures basis, the most active April Comex contract is currently fixed at $1990.20, a net decline of $10.30 or 0.51%. However, this decline can be largely attributed to dollar strength. Currently, the dollar is up by 0.63% and with the dollar index fixed at 99.12. While gold pricing is lower today, it is completely the result of dollar strength and fractional buying of gold.

Kitco Gold Index (KGX)

Currently, spot gold is fixed at $1988.60, a net decline of $8.60 on the day. The Kitco Gold Index shows that dollar strength resulted in gold declining $12.40, and fractional buying resulted in a gain of $3.80, resulting in the net change today of -$8.60. Continue reading "Gold Corrects After Challenging Record High"

Inflation And Ukraine Crisis Cause Gold To Surge

Gold prices have been moving to a higher value at a pace not witnessed in quite some time. On Monday, gold futures basis most active April 2022 contract opened at $1920 and closed at $1900 after recovering from a low of $1893. On Tuesday, gold prices gained over $40 and accelerated the defined uptrend that began the first week of January. The rally has continued today.

As of 4:22 PM EST on Friday, April futures are currently up by $39.40 (2.00%) and fixed at $1974.90, which means that gold gained $74.90 this week, resulting in a net weekly gain from Monday's low to today's current price of 4.3264%.

When added to the price advance of January 31, that accomplishment reveals a profound fact. In just over one month (January 31 to February 4), gold prices have gained $194.90, a percentage gain of 10.94%. Continue reading "Inflation And Ukraine Crisis Cause Gold To Surge"

Gold and the New Technical Triad

Today's guest is Gary Wagner featured Trend TV author and founder of Wfgforex.com. Gary is going to share with us part 3 of his  "Gold and the New Technical Triad" with traders blog readers. Be sure to comment with your thoughts on the gold market.

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Gold which has been trading higher the past few weeks is, I believe, is in a correction within a corrective phase. That is to say it is going against the short term trend as it moves higher. I am fundamentally extremely bullish on gold, and in fact believe that it will surpass 1265 and trade to 1300 an ounce. However, before we get there I think we will need to weather one last correction.

In this, part three of a blog I began on may 13, 2010, we've followed gold as it now enters the final portion of this corrective phase. I believe that in the proper hands, wave theory will provide genuine and relevant market insights, and in the wrong hands will enable a lot of skeptic’s added reasons to doubt this technique. For those who have are skeptical about the relevance of Elliot wave, I hope that this blog might cause you to re-examine this technique again.

Continue reading "Gold and the New Technical Triad"

A New Technical Triad and Gold

One of the most popular questions that we're asked here at MarketClub is to recommend which chart studies should be used in conjunction with one another. While we don't have an answer for this question - mainly because we realize that there is no right answer, you're in luck as today's guest blogger has developed a strategy using 3 different technical tools and described it in detail for us below.

Gary Wagner of WFGForex.com has developed a unique strategy using Elliot Waves, Fibonacci retracements, and candlesticks to gain insight on the current gold market. Since Gary received such a great response last time he was a guest, we hope that you will enjoy is newest post as well. Read about this interesting way of analyzing the market and leave your comment below.

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Most market analysts will agree that supply and demand economics are a major influence on the current price of a commodity. It is however market sentiment that greatly determines the perceived future price.  If one can understand, and quantify market psychology or market sentiment, one can more effectively forecast future prices. This has been the underlining assumption of Elliot Wave and Fibonacci Retracement theory. Continue reading "A New Technical Triad and Gold"