Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Gold Is Looking for a Rally

By Anastasiia ScavoCommoditiesOct 22, 2021 11:25
Gold Is Looking for a Rally
By Anastasiia Scavo   |  Oct 22, 2021 11:25
Saved. See Saved Items.
This article has already been saved in your Saved Items

When I was recently looking at the gold prices chart from the perspective of the coming months, I saw minor indications that prices may break through the strong resistance around $1800 per ounce. But all major movement start with minor steps. And within the coming week we may get a first clear sign about the rising of gold prices.
If we look closer at the bullion daily price chart, we may find that starting from June prices came up to the resistance, but were never able to breakthrough. Now we have a fifth attempt that may be more successful. This resistance is at $1796-1797 per troy ounce. We may also notice that the gap between these attempts is becoming shorter as the last attempt was recorded on October 14. The line that connects lows of September 8 and September 29, and is located at $1744-1745 per ounce represents the support.
It this resistance is broken through than gold has all the chances for steep growth at the height of the consolidation range that it is now in. And the very closet price gold may reach during this rally is at $1940-1945 or 8% up. The key indicator for this rally would be a trading volume that has to rise significantly compared to the regular trading volume within the current consolidation. 
It is worthy to note that the higher the closing of this week is, the more chances we may have for a reversal pattern on the weekly timeframe chart. The intermediate resistance would be at $1833-1837 per ounce, or highs of July and September.
We may have gold outperforming the U.S. stock market. But this would happen only if the inflate stock bubble collapses. For example, during the Great Depression in the 1930s and in times of high inflation during the 1970s, the ratio of gold prices to the Dow Jones index were at 1:1. Today the Dow Jones index is far above this level, at 35,600 points, or over 2000% of gold prices, and with high inflation pressure, it is logical to suggest that the model that we had in the 1970s when gold prices surged and stock market plunged may be repeated. But not only would the bullion benefit in this case, silver and other counter-inflation instrument would also rise in price.
So we may have a clear conclusion that we do not only have technical but fundamental factors for precious metals prices to rise. And it is Important not to miss the signal for the start of this rally.
Gold Is Looking for a Rally

Related Articles

Andey Goilov
Crude Oil is Rising Cautiously By Andey Goilov - Apr 18, 2022

Early in the new week of April, oil is growing. Brent is currently trading at $112 but the bulls aren’t very active so far. A new wave of the USD strengthening is having a...

Gold Is Looking for a Rally

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Asmat Nawaz
Asmat Nawaz Oct 23, 2021 3:07
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excellent article
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email