LunaticTrader

Investing with the Moon

Gold on the brink

Posted by Danny on February 4, 2013

The S&P 500 and the Dow Jones Industrials index have come very close to their all time highs last week.
Even though there is a pullback today, I think we will see another attempt to set new high marks this week or next.

Meanwhile let’s have a look at the Nasdaq index (click for larger image):

Nasdaq

The Nasdaq has a little bit more room to rise. Could reach 3225 in the coming weeks.
But the Earl2 index is showing the first signs of topping out, which means a more significant correction is likely to start within the next few months.

***

As chart of the week we take a look at gold prices again (click for larger image):

Gold

The precious metals markets are going to get interesting soon. Gold appears set to break out of a narrowing triangle.
Which way will it go? Markets have a habit of putting investors on the wrong foot, before making a move.
I think we will see a weak attempt to get above $1700, and then a sudden move to the downside.
Unless gold breaks above $1800, there is no reason for enthusiasm.
I will be selling my gold related positions this week, and will buy them back after we get a good correction or on a break above $1800. In the worst case I will have given up some 5% profits.

PS: if you missed out on our forecasts for 2013. They were published last week and you can find them on the Four Pillars Finance blog: here.

Good luck,

Danny

9 Responses to “Gold on the brink”

  1. roni said

    hey danny
    i didnt see any comment o n the us dollar in the 2013 forecast please can u tell when do u see peak and bottem for the dollar in 2013 ? tnxxxx roni

  2. pjsmitnl said

    Thanks for the 2013 Forecast
    Regards Pieter , Netherlands

  3. […] few weeks ago we warned for a possible sudden move downwards in gold prices Meanwhile gold has dropped more than $50/ounce and is now sitting just above $1600. What’s […]

  4. […] Gold on the brink […]

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