Analysts keep their faith in the long-term gold bull run

(Reuters) – It’s hard to be upbeat about gold these days, but technical analysts are keeping their faith in the long-term bull run — just barely.

As the precious metal fell by a record over $120 an ounce on Friday and Monday, peak to trough, gold selling snowballed as several important technical support levels were breached. What began in early September as a correction after several months of accelerating gains has threatened to become a rout.

But the most critical price points needed to maintain the post-2008 rally at around $1,500 an ounce have held firm for now, according to analysts who study candlestick charts and historical trends to predict prices.

Monday’s low at $1,534.49 was just above the 200-day moving average at $1,527, the first of three relatively clustered support levels that are either going to provide good reentry levels, or, if they all crumble, perhaps signal that this was more than a short-term correction.

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Posted by VBN on Sep 28 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry