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Gold Continues to Carve Out A Long Term Bottom

OWNx Team Gold & Silver Market, News & Commentary 0 Comments

The price action of gold over the last few weeks is consistent with a notice we put out in April of last year to our clients.  In that notice we informed them that the price of gold’s late 2015 drop to $1,050 and subsequent recovery and breakout of a 4+ year the technical downward trend line set the stage for a possible multi-month consolidation.

The consolidation has now lasted nearly a year and it may not be over yet. It is possible that we will see an extended period of choppy price movement between the 2015 low and subsequent 2016 high in the $1,370 range as the impact of the unprecedented geopolitical events of 2016 becomes better understood.

For those who steadily accumulate gold and silver with a medium to long term horizon, this is good news. While every investor wants to see their holdings grow in value, any opportunity to own more ounces at a lower price is welcome. Meanwhile, for those who take advantage of the price swings that accompany consolidation patterns, being able to buy and sell physical gold and silver immediately is also welcome.

Gold has recently risen from it’s December low around $1,130 to nearly $1,200 today. From here it could go either way in the short term. Longer term, we continue to see favorable price projections in the years ahead that are considerably higher than today’s levels. We will continue to be here to help you achieve your financial goals.

Gold Futures Rally to Near 7 Week High Near $1,200

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