Why Gold? - UPDATE
The long-term picture
The long-term chart clearly shows that gold has moved into a solid up-trend which started in March 2001 and is here for everyone to see. Some called the resistance level around $ 325 a "Maginot-Line" which appeared almost insuperable. However, looking back, we only had to digest the sharp advance from $ 275 to $ 325 until June 2002 which was a bit overdone.
Short-covering may drive the price higher short-term but eventually we shall need a consolidation of this advance.
More important however is the fact that the UP-trend has been confirmed.
The medium-term picture
Medium-term, the gold price has concluded the consolidation that started in June 2002 with an impressive break-out in December at the level of $ 325 to $ 330 confirming forcefully that the UP-trend is solid.
The short-term picture
Short-term, the gold price broke out of the horizontal trading channel between $ 315 and $ 325 in December and has established a higher trading range between $ 340 to $ 355 which now acts as a support for an eventual advance towards the $ 400 level.
How to participate in the unfolding bull-market in gold:
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Peter Zihlmann
www.pzim.com
forex@pzim.com
January 8, 2003
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