'Gold price to fall below $900'

[SantaClaus]

I think they go under their bridge at weekends : I am sure they will be back on Monday......

lol

btw, Elliot Wave forecasts have gold falling to $680.75 once it breaks the $900 level.

[BrilloPad]

OK, Sasguru and PMJunkie flame away. I got my fireproof suit on now

I think they go under their bridge at weekends : I am sure they will be back on Monday......

[BrilloPad]

You lot going to work on Wednesday?

Of course I am. It will be a scruffy day.

Mrs BOP says to get any scruffier I need to mug a tramp.

[SantaClaus]

You lot going to work on Wednesday?

I work from home. So I'll be settling down with a nice cuppa tea to watch the riots on telly.

[suityou01]

You lot going to work on Wednesday?

[SantaClaus]

I blame Spandau Ballet.

You know what they say about Gold, "It's indestructable"

[minestrone]

I blame Spandau Ballet.

[SantaClaus]

Thanks for that article Brillo. Reminded me to do some analysis on Gold for next week.

I really do believe fibonnaci works in the market. Not because they are "magic" but because so many traders are watching these key levels that it becomes a self fullfilling prophecy. Certain fibonnacis work very well with particular currencies/commodities. The 61.8 retracement works very well with gold.

But in the article above, the analyst has measured his fibs wrong.

If we are going to measure from the high of 1030 on 17th March 2008, it would make sense to use the low price of 681 on 24th October of the same year.

We would then see we have bounced off the 78.6% fibonacci at the price 955 a few days ago.

The same level coincides with a 61.8 fib as he has stated.

So yes, I do believe gold is going down if it can conquer some strong support around the 920 level, possibly after a retracement up to 937.

OK, Sasguru and PMJunkie flame away. I got my fireproof suit on now

[BrilloPad]

http://www.telegraph.co.uk/finance/p...below-900.html

'Gold price to fall below $900'
Gold may extend a decline after failing to breach so-called resistance at $977.41 an ounce.

Standard Chartered Bank said that gold could extend its decline, citing trading patterns and forecasting that the metal may drop to less than $900.

The resistance level represents a 76.4pc retracement of the metal’s drop from the near-record high of $1,032 an ounce to the low of $883.90 on March 18, said David Barclay, the bank’s commodity strategist, referring to a number that is part of the Fibonacci sequence.

Spot gold is expected to trade lower over the near term, as a potential top continues to unfold. There is “a sell signal in place for now,” said Barclay. Resistance refers to a level where sell orders may be clustered.

Technical analysis is founded on the belief that past trading patterns can be used to predict future moves. Fibonacci analysis uses a mathematical formula based on the theory that prices may rise or fall by certain percentages after reaching a high or low.

A break of one indicates an asset may move to the next, while a failure suggests a trend may stall. Other Fibonacci points include 61.8pc.

The metal last traded at less than $900 an ounce on March 18, when it dropped to as low as $883.90.

“The one-month view for spot gold continues to favour a breakdown below $900, which should allow for a test of $865 to $860 and lower,” Barclay added.

So-called daily momentum indicators, such as the 14-day relative strength index and the stochastic oscillator, are “mostly bearish, and upticks are still favoured to sell into”, Barclay wrote. The 14-day relative strength index is 54.52 and falling, according