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Gold Price Forecast and Analysis - 2010 Q2 by Hilda Chan

2010 Q2 Outlook on spot gold price trends: (created on 8 April 2010)

A quick summary of what happened in Q1 2010 (a technical correction season):

The price of gold entered a seasonal correction period in Q1 of 2010. After reaching USD1226 (historical peak) in Dec 2009, gold came back down in Jan 2010. The price of gold was mainly traded in the area of 1085 – 1140 in most of Q1.
During Q1, gold price pulled back into the 1080 – 1100 area, and after tested for support, it moved up to attempt to break 1125 – 1140 area. But unsuccessful, as below chart shows that gold price attempted to stay above 1140,but failed several times. Then gold price subsequently came back down to the 1100 – 1125 area.

Q1 Peak: 1161.7
Q1 Low: 1043.7
Q1 range: 1085 – 1140
Q1 narrowed range: 1100 -- 1125

Fundamentals affected Q1 prices:

It is interesting to point out that: gold price was not always in positive correction with Euro vs USD trend lines in Q1, even when Euro was falling sharply against USD due to Greece debts, gold managed to find some support and the percentage drop in gold price was not as significant as the fall in Euro. At times, when the USD index was trading low, gold price did not find much strength to break about resistance levels such as 1125, and 1130 – 1136 areas. However, there were times such as in March 2010, when Euro was trading weak, gold price did fall back into the 1094 – 1104 area for some time.
Technicals for Q1:

Gold price did find strong support at 1100 as most of Q1 gold price did manage to stay above 1100 level. But lacking the strength to stay above 1125 for most of Q1.

And the lowest for gold price was USD1043, and at times we were concerned that if gold price would fall below USD1000, then the long-term upward trend for gold price would collapse. Fortunately, gold price did not go anywhere near USD1000.

In Goldtrades.info’s view, gold price was going through a technical correction season in Q1, as we had mentioned in our previous weekly reports many times.

Now, going into Q2 of 2010 for forecast of gold price trend (a rally season):
We remain bullish for long-term gold price trend, and forecast a move into USD1320 – 1360 area in 2010.
If history repeats itself, after Q1’s seasonal correction, Q2 should be a rally season for gold price.

Fundamental supports for Q2:

Interest rates will remain low in Q2, as US Fed had mentioned in its report in March 2010 to reassure there is no immediate needs for raising rates. USD shall remain weak for sometime, US labour market and debts remain key concerns of a US recovery. Gold remains as an attractive alternative asset for investors including central governments. Central banks typically hold gold as a portion of their reserves. If central banks engage in net buying of gold this can drive spot prices up. Traditionally, gold has been used as a hedge against the falling dollar. The idea behind this trading is that gold is an alternative to currency that is not as strongly influenced by any one economy. The relationship between gold and currency is an inverse one. In addition to this, as gold is often quoted per ounce in US dollars, investors with alternative currencies may find that their native dollar stretches further with more value when the US dollar falls.

On the technical side for Q2:

Traditionally, Q1 and Q3 are seasonal corrections periods, and Q2 and Q 4 are rally periods. 2008 Q2 , 2009 Q2 – gold price rallied. If the same trend applies, 2010 Q2 should see another rally.
At the end of March 2010, gold was trading between 1104 – 1114 for a few days, then moved up to breaking 1118 minor resistance, and on the 1st April 2010, gold price broke 1125 and reached 1153 on the 8 April 2010.
If gold price is to get on a rally as forecasted, it has to find strong support at 1125 – 1140 area. Then will be moving to test 1160 – 1180 area for resistance. 1160 is a critical horizontal resistance for gold to break in order to confirm a rally. If 1160 – 1180 shows support, then gold price could attempt to break 1200 level.

Initially we forecast gold price to be trading between 1125 – 1160 at the start of the season, and if gold price can break the 1160 resistance, next move will be into the 1160 – 1180 area. And, if gold finds support at 1180, then a further attempt to reach 1200 level.
On the other hand, if gold price fails to find support at 1125, we could go be back into the trading areas of Q1 in 2010.

Key areas for gold price in Q2: 1125 – 1140 , then 1160 – 1180, then 1180 - 1200
Critical horizontal resistance: 1145, 1160, 1180, 1200 Cautions: gold price has to break above some critical horizontal resistance in order to confirm a rally.
If it fails to stay in the 1125 - 1140 area, it could be returning to the Q1 areas.
Support areas for gold price in Q2 : 1110 - 1118, 1100 - 1108, 1094 - 1104, 1085 - 1090

At the start of the season Q2, gold price moved up from 1125 to 1153 ( a USD30 rise ) on the 8 April 2010. This could be a good sign to suggest a start of a Q2 rally. However, as mentioned before, gold price must be testing for strong support at 1125 – 1140 area, before a rally can be confirmed.

Goldtrades.Info remains bullish for Q2 and forecast a rally for gold price into the 1160 – 1180 area. And should technicals hold, 1200 could be achieved.

Hilda Chan
Senior Analyst
hildachan@sbihk.com
www.goldtrades.info

Goldtrades.Info - 24 hours gold price forecast analysis and trades signals. We also provide real-time trading strategies and gold markets news. Investors can trade through our online platform. Please visit us for more analysis: Goldtrades.info

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Considerations You Should Have When Buying Gold
By Jacob Richard

From the miners in the old west to the current ads you see on television buying gold has been a pastime for many. It is the metal that our national debt is based on as well as the adornment that we wear. You may have always wondered how you get into the business of purchasing gold. Or you may have gold you want to sell. Here is a brief explanation of the basics to getting into this hobby or professional business.

Gold is an profitable investment. You however want to ensure that the gold you buy is true gold and that you avoid the scams on the market that will only cost you money. Therefore when you begin your research you will want to find those places that have an impeccable reputation.

Begin online as this is a great source for you to find those reputable companies online. You cannot trust a company just because they are the first listing on a search engine. There are ways to get yourself at the top of the search but this does not mean that this is the best and most reputable company.

You will need to look at their sales rating. All reputable companies are registered with the Better Business Bureau (also called BBB). This means that they have been tracked by the customers who report on them. If they have a bad rating this should be a red flag to you that this is a company you should not buy from.

When you purchase gold there are many options. You can buy it and keep it for yourself. This can be done in many forms. There is gold bouillon, coins and bars, for example. You can find other ways to purchase gold. It can even be done in stock form through a company. You may have a safe in your home or you might want to register a safety deposit box at your bank. Either one is fine depending on your personal needs.

You can also buy it and have a third party involved. This third party company will store the gold you buy in a safe place. This option will ensure that you have the property but not the responsibility. However, you will need to know that it is there. This is where the reputation of the company you buy from comes into play.

You will need to weigh the cost of what you want to do with the gold that you purchase. Consider the costs of the third party storage in comparison with the cost of the safety deposit box. This may help you make your decision. The same is true if you are going to install a safe in your home. You will not want to alert anyone to your home storage to evade the temptation of intrusion. Weigh your options and make the best decision for you. Some people just like to know the physically have the gold in their possession in their home or at the bank. You just do not want to be paranoid to home invasion should you choose this option.

There are other tips for buying gold that can be found on the internet. Do your research, check sales ratings and consider storage. It is a great way to invest you money and secure your future when done the proper way to avoid any scams on the market. Check online and even watch a tutorial if you feel this would help you.

Are you looking to find the best deal on Buying Gold? Visit my website to find out more!

So what are you hesitating? Visit my website to find the best advice on Buying Gold for you.

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Where Can I Sell My Gold Jewelry - The Best Place to Sell Gold
By Frank Kerley

At one time or another you may have asked yourself, "Where can I sell my gold jewelry?" Knowing where to sell your gold jewelry is the first step towards getting the extra cash you need.

Where Can I Sell My Gold Jewelry

There are many places that specialize in the buying and selling of gold. You can either choose a physical, brick-and-mortar store or you can use an online gold buying business. You will need to take time to research which businesses will provide you with the best price for your gold.

You can begin with friend referrals so that you can find out more about the businesses that you may be interested in pursuing. Referrals are usually the best way to answer the question - where can I sell my gold jewelry?

Another way is to go online and read reviews of other people's experiences with a particular company. Then, you can check the Better Business Bureau website to make sure that the business is legitimate and that they do not have an excessive amount of complaints.

Best Place To Sell Gold

Going online is your best option because of the convenience and speed at which you can sell your gold. Gold is reaching record highs right now so the time to sell could not be better.

When you send your gold through the mail to an online business they will let you know what they can offer, and then you can accept or reject it -- if you do not like their offer, then they mail the gold back to you. You usually have about 2 weeks to make your decision.

All it takes is a little time and a bit of patience to get the best possible amount of cash for your gold jewelry. Once you have found the ideal place to sell, you will no longer have to ask yourself- Where can I sell my gold jewelry?

Want to know the best place to sell gold for 3xs More Cash? Don't become a victim of the cash for gold scam. My friend, if you are seriously interested in selling gold, I urge you to visit this website before you do anything else. To read a full Consumer Report and watch a Special News Report Video visit http://www.CashForGoldReports.com.

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