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.
"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.
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....