Why the $1580 (US) level in Gold is important (to me).
Weekly Gold Chart (my platform and my analysis).
I’m thinking the April high of $1580 as support which coincides with:
1. Line of trend support drawn from January low of $1308 .
2. Red 30 week Simple Moving Average line which has been defining support since January 2009.
3. Yellow Weekly RSI (7) in its historical turn zone (45).
Every time parameters 1 to 3 have lined up above she has bottomed PLUS, as a bonus $1580 was the level of April resistance
This could well overshoot in these crazy times, where the majority of world banks are insolvent (not just Lehmann) and the governments are in debt up to their eyeballs but its already corrected a healthy 15%. With the banking sector insolvent methinks there is real need for a 'real' safe haven
(click on charts to expand to see the nitty gritty)
Well, it appears that $1580 is holding. Chart Update:
I've added a 40week (approx 200day) Moving Average to the chart (yellow line), where gold bounced off following my last post on the subject.
$1301USD Fib 50% Extreme bottom Support IMO, I can't see this breached unless the impending depression gets 'fixed' by some miracle or war (like WW2 'fixed' the 1930s depression) etc.
Another Gold blogger I discovered last week is also fan of $1580. Gold Trading Desk.
PS Want to know who is the main suppressor of Gold? JP Morgan mainly and HSBC to a smaller scale. These figures below are in millions. JPM has $1.79Trillion in assets and $78Trillion in derivatives exposure, 43x its assets and over 1.3x the GDP of the whole world.