Not only is it interesting to watch the gold charts, it’s also intriguing to read the various news and commentary on gold.
Yesterday, Ben Bernanke, Chairman of the Federal Reserve, announced interest rates would be increased in the near future. Currently, interest rates are very low at .5 percent.
Shortly thereafter, gold prices dropped – which is odd, because they normally go up on news of interest rates going up.
Per Kitco’s charts for yesterday, the New York spot bid price spiked down to the $1062 per ounce range. But, the price chose not to stay down for long. Today’s prices peaked over $1095 mid-afternoon. Will it stay in this range?
Another interesting exercise is to look at the performance charts to see where there is “support” and “resistance” on the gold prices. A good chart source is www.stockcharts.com. You can either click on the $gold consistently requested chart or type $gold into the symbol area. Either method provides a charted view into gold’s performance over time.
In the meantime, back to yesterday and today’s gold performance.
Take a look at this article on Bloomberg News: Gold Gains to One-Week High on Commodity Rally, Euro Concerns for a discussion and speculation on what gold prices will do in the near future.
One opinion stated in the article says, “I don’t see any scenario where gold will collapse.” They definitely have experience in the market, but are they right?
In an apropos quote, Rick Belluzzo, former Microsoft president, said this about embracing change as opportunity, “Life may be a roller coaster, but without the ups and downs, it wouldn’t be much of a ride.”
Gold sure forms its own roller coaster – watch it or ride it, both can be fun.