The gold price made some wild moves this week. It was first up 5% on the news that Russia had invaded Ukraine, but fell after this was confirmed, and ended the week lower. Those who bought in panic got their hands burned once again. However, there's good news in this for the patient investor.
The gold price has broken out of the wedge, and is now trading well above it.
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| Monthly gold chart |
What was upward resistance over the past 18 months is now support, making it unlikely that we'll see the price of gold drop below $1800. The handle of the decade old cup formation is being completed.
Going forward, we can expect upwards resistance in the $2000 region, and support in the $1800 region. This may last several months, but the handle will eventually be completed. Once the price of gold goes above $2100, it's likely to go to $3000 within a year or two. That makes now a good time for the patient investor to accumulate more gold.
.jpg#/media/File:Cup_and_Saucer_LACMA_47.35.6a-b_(1_of_3).jpg "Rococo Cup with handle") |
| Rococo Cup with handle |
By Vincennes Porcelain (France, circa 1739–1756), Francois Binet (France, active 1750-1775, born 1731) - Image: http://collections.lacma.org/sites/default/files/remote_images/piction/ma-31852871-O3.jpg Gallery: http://collections.lacma.org/node/229367 archive copy, Public Domain, Link
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