If you look at the following charts, especially the Weekly Chart, it shows that AU has regularly dropped down to its MA(40) weekly moving average. Currently, that line is in the $320-$325 area. Admittedly, in the time it will take to come down towards the line, the line will have moved up a bit, but you get the idea. Can someone tell me why they think this will not happen, especially given that it appears AU has topped out at $390?
Couple of points: A)It's been almost two years since pog has been below the 40 day ma. 2)There is (was) a war premium in the pog.I would say about $10-$15 and that might have been taken out today with Powells speech. C) To get a better picture you need to compare that chart with one of the dollar in that same time frame. 4)"topped out at $390" That was only yesterday. I really don't think you can say it topped out after one day. Wait six months and then see what it has done. As I type this forex has pog at 370.20 which is what we had on Monday.
I cxan't tell you that gold will not go down to those levels. However, the problem with gold is that it can be like a wildcat springing up when you do not expect it. I will you tell you, I just keep on adding....
"AU has regularly dropped down to its MA(40) weekly moving average. Currently, that line is in the $320-$325 area"
That would probably equal $330, a perfect place for support, just like what happened when gold corrected from $330 to $300 in the summer.
IMO, the shares never kept up with the POG up to $380 because many longs must have factored in such a correction...memories of last July are too current. Remember, most current gold share owners are tech savvy and cautious. But I never sold either, not worth taking a chance. Buy and hold is the best motto, so you never second guess yourself. And you never know what's around the corner that will blow technical anaylsis out the window.