The Street: Here's How Gold Prices Can Reach $5,000
Article by Ed Ponsi in The Street
At the beginning of this year, gold traded near $2,640 per ounce. By April, the price of the yellow metal had climbed to $3,509 — a gain of about 33% in just four months.
Since then, little has changed for gold investors. Over the past four months, gold has been trading in a range between $3,123 and $3,534.
Gold’s 50-day moving average, once tilted firmly upward, has gone flat. The 200-day moving average is still climbing, but its rate of ascent has moderated.
Based on the daily chart, it’s fair to say that gold is consolidating after a major rally. When that consolidation ends, the most likely resolution is a breakout in the direction of the previous trend.
The Big Picture for Gold
That's bullish, but not as bullish as gold’s monthly chart. In this time frame, gold has skyrocketed after .....