Many investors
were totally disillusioned last week when gold took a bearish trend and hit
lows of $1,615 an ounce. According to some asset fund managers, the fact that
the Price of GLD which was forecasted at $1,825 an ounce fell to below $1,615 within six months means that
it would get it even lower to $1,550.
However, the
Goldman is wrong in this one. The fact remains that despite this pullback in
the GLD Quote, gold prices
have begun to consolidate at a relatively higher level than previously. This pattern
is largely bullish; indicated from the technical pattern that the Price of GLD is forming. This
pattern is referred to as the symmetrical triangle.
The last
time we saw this pattern in the precious metal market was in 2008/2009. Immediately
after that pattern, a series of multi-climbs in the price of gold was seen. The prices
of precious metals; particularly gold then almost doubled their price. As such,
I tend to think that we are just at the beginning of that cycle and the GLD ETF is headed for a kill.
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information on the GLD Quote!
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)