In the wake of rising belief in the US bull market, and relative calm overseas, gold has fallen from its recent highs. So after all the up-and-down, where are we now?
The numbers are pretty straightforward. “Raw international gold”, which is how we like to think about the London gold price fix that is quoted as THE price of gold on the news, is at $1264 US dollars per ounce as of this writing. GLD, our trading proxy for gold, is at 120.39.
We can see the recent action in perspective on the 3 month chart.
What the chart shows is that even with the recent drop, gold is still moving up. You’ll remember that the definition of an upward trend is higher highs and higher lows. This refers to the tops of the peaks and the bottom of the troughs. We can clearly see the recent high in gold was above the previous high. And the current bottom that we’re near is higher than the previous bottom. So as long as GLD doesn’t drop below 118.53 we’re still in an uptrend in gold.