Patrick, > > I don't quite see how that chart demonstrates a > long term upward trend.
Both log targets as well as the interim lows in intra-day movements suggest an upwards trend indicated by the gray line in the chart. > > In order for prices to reach the $326 level, they > would have to break a few supports, including the > 2 years old upward channel. I didn't say that the market _should_ reach such a low level, but merely that it _could_ and would still be inside a long-term upward trend. The reason why I menationed it is to avoid people getting the jitters and start jumping ship if we fall below $344. > Also, $ 326 would be about Euro 296, which is > pretty unlikely too, as you could appreciate here > : > http://www.anygoldnow.com/TechAnalysis.html#medium I'm not sure if we can indeed apply a EURO chart in a long term gold analysis given the fact that theu EURO is pretty young and available data is based on a time in which Europe underwent just about any trouble that could befall an economy. One could also hold against your argument that the Australian dollar has been rising in tandem with the Euro and even outperformed the Euro in a head-on comparisson. So, judging the gold price gainst the euro in relation to the US dollar may just be a bit too risky, IMHO. After all, the current rise in the EURO is not based on strength of the currency but on weakness of the US dollar and the fact that more and more people [countries?] loose their trust in the dollar. But switching trust from one valueless paper unit into another isn't really a fix as such. > > Good call. However, that was pretty obvious. > Hey, but I was the one who mentioned the obvious while others were planning their retirements for gold reaching "$800" ;o) > > My point is not the "I told you so". > It is about trying to understand what's going on > with Gold prices, and - if possible - help people > avoid taking long positions too early. > I suspect there are more and more new Gold > investors around. > The worst thing that could happen to them would be > to get burned (short term) for having taken > positions at the wrong time. I agree. That is why I posted the link to the chart and made some comments about it. Not only to help people make their decission when to buy, but much more when NOT to sell. The amazing profits of the dotcom boom have made most investors somewhat impatient and press keeps talking gold down. If people jump out in large numbers based on those press reports then we have another case of self-fullfilling prophecies. After all it was mainly the fact that investing had been turned into a spectator sport that allowed the press to talk up dotcoms and afterwards talk down the economy. Spending patterns hadn't changed and if the press had been less gloomy and more specific then I believe that the downturn would have been far milder. Unfortunately everyone had forgotten at the time that the huge jump in sales of IT equipment in 1999 had something to do with the fear of the Y2K bug and that it was unlikely that equipment sales would continue to rise as much beyond 2000. Well, the rest is history. Cheers, R.S.Z. www.cyberica.net www.cyfrocash.com --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
