Shutterstock photo
Markets

Gold Hits Record High

Shutterstock photo

Shutterstock photo

printprofile

Gold hit a record high of $1,315 an ounce this week, extending a two-week rally of fresh records on concerns over an economic recovery. Gold has made a significant upward correction, which can be directly correlated with the bullish trend of the EUR/USD cross. As I will demonstrate below, the price of gold may very well be heading for a reversal. This recent activity has raised the stakes for traders. From here on, the forex and commodity markets will see very high volatility indeed.

• The technical indicators used are the Slow Stochastic , Relative Strength Index (RSI) and Williams Percent Range.

• Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 4: The Williams Percent Ranges is showing that this pair is heavily over-sold and may be experiencing strong upward pressure.

Gold Daily Chart

gold 1-10-2010

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx