Critical Factors Gold Investors Should Not Ignore This Month - Gold Price, Gold Prices

Jan. 12, 2013 - PRLog -- Following a Fed-induced rally into October 2012, precious metals lost their luster, trending lower for a lot of the previous 3 months. This price action has been especially frustrating for Gold bulls, as many thought the prior move greater was set for continuation according to gold technical evaluation. How High Will Silver Go? Learn More >> http://www.silver-dollar-values.xtz.cc

It is incredible to determine how sentiment has changed in just a month or two. Now some pundits are questioning if Gold will need to take out the 2012 price lows prior to embarking upon a brand new leg greater. The metals are clearly soaked with uncertainty right here, so an uptick in volatility is most likely. Gold followers and investors could be wise to block out the noise and focus on the price action and inter-market corollary indicators (i.e. the US Dollar). Obviously this really is simpler stated than done, particularly with another round of debt ceiling talks and political posturing lurking about the corner.

My thoughts: January will most likely inform the tale. And Gold technical evaluation and current cycle evaluation appears to confirm this… a minimum of from a trading viewpoint. With this in thoughts, listed here are 3 elements that Gold investors ought to be conscious of over the coming days/weeks: Rare Coins, Silver Coins, Gold Coins >> http://www.silver-dollar-values.xtz.cc/SELLING-GOLD/

1. Gold Technical Evaluation and Levels (in terms of GLD):
So, what levels ought to investors be watching now and how will investors know when the sparkle is about to return to Gold (GLD)? Nicely the answer to that query might largely rely on GLD’s capability to hang in and about the 61.8 Fibonacci retrace level (let’s call it $158). Note that this level was briefly touched in December. Also, a comparable setup occurred in the exact same Fibonacci retrace level in April 2012… and resulted in a breakdown. With volatility certain to rise, investors might wish to give GLD some intraday leash, or possibly apply a closing rule for exiting positions (note that this rule may be applied for re-entry also). Gold technical evaluation highlights lower supports at $155, followed by the 2012 lows.

Should Gold pivot greater, upside levels to watch consist of $164 (December breakdown and early January pivot), the upper channel downtrend line ($167 and falling), followed by $170 and $174. Either way, volatility is most likely to choose up, so investors (long and short) could be wise to make a strategy and handle risk accordingly.

2. The January Barometer:
Each of the previous 3 years has observed substantial trading bottoms in or about January. And this year seems to become headed in that direction once more. The Gold Bugs Index is very oversold and attempting to stabilize. The index can also be near it is 61.8 Fibonacci retracement of the summer-fall 2012 rally.

3. The US Dollar:
The Dollar will be the wild card right here. And as one of the best corollary indicators for the direction of gold, it bears watching. Following rallying out of a good rounded bottom in 2011 (which correlated having a topping pattern in Gold), the Dollar spent a lot of 2012 forming a Head and Shoulders pattern. A sustained break above 81 would foil the pattern and most likely start a move greater for the dollar (bearish for Gold). Nevertheless, a break beneath the 78-79 neckline level, and Gold will probably be in a rally mode. My suggestion is to buy gold and buy silver and hold for the long term. How High Will Silver Go? Learn More >> http://silver-dollar-values.xtz.cc