A constant argument in the office is “just when was the beginning of time”. Constant, aside from the fact we’ve never had it, ‘cos it’d be silly. The price of gold bears witness to how some things we deem important are ignored by the wider world. The Brexit vote, for instance, is a case in point.
Virtually across the board, UK shares illustrate the Brexit vote – unsurprisingly – as a pretty important moment in time, though with nothing like the importance of the crash of 2009.
However, the price of gold paid the Brexit vote scant attention, suggesting UK sentiment had little importance on the world stage. Thinking about it, this is probably correct as no matter what, the UK will remain in place as shall Europe.
Something a little odd has been happening with gold, as the price has resolutely failed to exceed $1,365 so far this year.
But the metal did exceed the downtrend since 2012 at the start of this year, this giving promise (or perhaps a confident maybe!) of anything now bettering 1,365 powering the price to an initial 1,384 with secondary, when bettered, at 1,472. If triggered, the stop required is painfully wide at 1,300 – or in plain English, reversal again below blue on the chart.
What happens if 1,300 is breached?
Initially some reversal toward 1,260 makes some sense. Below such a point and we’d prefer give the tea leaves another stir, due to the apparent risk of a further 200 dollar fall.
Source: interactive investor Past performance is not a guide to future performance
Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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