Silver Dollar Values Prices Rising, Are Gold Prices Near The Bottom?

NEW YORK - May 25, 2013 - PRLog -- It is been a chaotic couple of months for the yellow metal, which has investors asking: Are gold prices close to a bottom? There is hope this price plunge is ending. Year-to-date, gold is lower by 17%. But following seven trading sessions exactly where gold prices slumped, on Monday June gold futures gained 1.4%, or $19.40, to $1,384.10. Contract prices bounced as much as 2.4% following sliding 2.1%. Learn more about GOLD >>> http://sellmygold.us

Now technical evaluation points to a rebound in the yellow metal to $1,500 in June, following the "double bottom" hit Monday. A double bottom entails 3 moves: a drop, a rebound, and another drop to the prior low. Chart watchers deem the pattern as bullish. A classic double bottom reversal usually marks an intermediate or long-term change in trend.

"This shows that gold is most likely prepared to climb," Matthew Schilling, a commodity broker at Chicago primarily based R.J. O'Brien told reporters. "The reversal was proof that we have discovered a bottom."

In just ten minutes Monday, in the wake of gold's rally, holdings of exchange-traded goods backed by gold soared by $1.7 billion.

Fueling the purchasing had been comments from Moody's that a downgrade of U.S. debt is most likely when the government fails to get its finances in order in 2013. Learn how to get Tracfone free http://tracfone.us

To get more information, we asked Morning Global Resource Specialist Peter Krauth if he thought a gold-price bottom was near. "I thing gold is somewhat oversold," Krauth stated. "Yesterday's price action, when gold shot up by about $40 inside 4 hours appears to reflect the considering that it is due to get a bounce." Krauth stated this year's gold price correction was anticipated. "After a 12-year bull marketplace with no accurate correction like that in 1974-1976 time frame, one more is due. I'd not be shocked to determine gold ultimately right a little further prior to making a final bottom. "That being stated, if it had been to turn up and remain above $1,550, then it is most likely this correction could be over," he continued.

Gold Prices Close to a Bottom

Gold prices got their first large hit this year on April 15, when the yellow metal plummeted 9.4%, the steepest drop in 33 years. Coupled using the prior session, gold lost $200 an ounce in just two days, officially placing gold in bear territory.

The 9.4% plunge was so uncommon, Howard Simons of Bianco Research noted, the odds against such a move had been 20 trillion to one-"a lower most likely of occurrence than randomly choosing a [particular] $1 bill out of a pile of singles representing the U.S. national debt."

However as Krauth explained, the gold price pullback is really a wholesome one. "Gold was setting us up for some type of correction," commodities professional Jim Rogers told Cash Morning in an exclusive interview last month. "Gold required a correction - it nonetheless needs a correction - and I hope this really is the correct correction gold needs. Then gold - someplace along the way - will make a bottom and we are able to all join in the bull marketplace as [it] goes greater and greater."

Money Morning Capital Wave Strategist Shah Gilani stated Monday that gold's current slump has more to do with trading than losing its fundamentals. "I do not trust the downtrend." "I believe there is perhaps a bit more to go, but I believe gold down right here is a superb purchase, and I'd definitely be purchasing it down to $1,200, $1,100 all day long." Now is a superb time to load up on gold and sit back for the long-term appreciation. Learn more about GOLD >>> http://www.sellmygold.us