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Gold coins are looking good this year as the week’s trading has placed the price of gold above the $1,600 an ounce level and we have the possibility of breaching the 200 day moving average in the next week.

January 9, 2012 – Gold coins are looking good this year as the week’s trading has placed the price of gold above the $1,600 an ounce level and we have the possibility of breaching the 200 day moving average in the next week. Gold gained $40 in twenty minutes on Tuesday and $30 in intraday trading on Wednesday, signaling the beginning of the end of the correction. Any analyst who foolishly though gold had entered a bear market is quickly revising the opinion and probably buying gold.

Gold is actually on track to outperform the Dow as it is now up 3.6 percent year to date while stocks are only up 1.9 percent. Gold has performed well, even during the correction against currencies also. In the face of the fiscal stimulus from central banks and the continued political problems in Europe, gold’s performance is pretty remarkable despite the attacks that have been made on its status.

The fundamentals of the market have always been intact. Supports around the $1,550 area remained strong and gold performed well against currencies considering the political upheaval occurring in Europe and its resultant effects on associated countries. The September correction in gold reached 28 percent before gold resumed its bull market upward climb. The December correction breached 20 percent, but the reversal has been pretty swift and strong.

The moves this week have prompted Citi to release a report projecting the price of gold to reach $2,400. They join an impressive list of major banks that have made similar claims in recent months including Goldman Sachs and Credit Suisse. Currently, the psychologically important level of $1,600 is holding and it is highly unlikely gold will dip below $1,550 an ounce. On the upside, there are resistance levels, per the Citi report, at $1,802 and further at $1,920 an ounce.

Currently, we’re at the very low end of that spectrum, which makes gold coins an incredible technical buy right now. The New Year has started off with a bang and it is very possible the gains will be extended into the next week as more and more investors recognize the correction is over and the bull market rages on. The time to get in is before the crowd. Buy gold coins now.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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