In the last 2-3 weeks even the most optimistic analysts anticipated a correction in gold prices, since the mini rally that had started the first day of the year was obviously bound for a “pit stop”. Looking at last week’s gold price chart you can see how this scenario was realized after the Crimea referendum, making this and the following weeks an opportunity for long term investors to cautiously position themselves in the market.
Informed investors had reasonably become more reserved when gold crashed through the $1,300 per ounce threshold, and few expected the $1,350 per oz. resistance to recede leaving way for gold prices to record a six-month high. The fact remains that when it comes to managing your savings and investment portfolio, gold price charts together with technical analysis should always be your most trusted tools.
At this time, gold prices are correcting with no evident support above $1,300 per troy ounce, and-all factors taken into account- that is where you should most probably be targeting your buying target price.
Using gold price chart statistics
Starting from the 24-hour gold price chart, you can easily monitor intra-day trading tendencies, which is in itself a valuable piece of information. You will often hear market reviewers mentioning the course of prices within a day’s trading as indications forming a short term trend or a reaction to a news bulletin that appeared in the Internet only minutes before, giving a “buy” or “sell” signal to short term profiteers and speculators.
In any case, private investors cannot take advantage of intra-day prices as buying and selling contracts are based on closing prices only and transactions always carry a premium. Nevertheless, conducting your own micro analysis is not a bad idea as professional traders often have other thoughts in the back of their minds and are sometimes focusing more on derivative assets (for example ETFs) than the actual trading of the metal in its physical form.
Micro analysis on a daily, weekly and monthly basis can be quite challenging and you should never opt out data and analyses provided by all reputable dealers, such as UK based coininvest.com. Together with up-to-date news and technical analysis data referring to the gold market, the site also provides gold coin price charts, which is a brilliant feature especially addressed to gold bullion coin purchasers.
Resistant point and support levels
Quarterly, six-month, yearly, five-year and ten -year gold price charts and market reviews are also widely available on the web, which really gives you the opportunity to minimize your risks and develop your long term gold investment strategy in the best possible manner.
What you are looking for is resistance points and support levels, as well as signs for the short and long term trend of the market. For this, you will have to combine price charts with three equally important indicators, namely quantity (you will easily find volume charts), the gold/silver price ratio and fundamentals. As for the momentum (market psychology influenced by world events) being an important factor, difficult as it may be to forget 2013 when little else seemed to matter, the truth is that economic logic eventually prevails rather sooner than later.