Gold Is on the Edge | Gold Investing

Thursday, April 24, 2008 | Home | Andy Mayo

The gold bullion exchange traded fund GLD has twice broken the support line formed by the apex of the triangle pattern from which it broke out decisively in February.  Since then GLD has been tracing out a head and shoulders pattern.  Today brought the price right to the neckline (red circle).  A decisive close below the neckline confirms the pattern and gives us a price target of $72.92. 



And it may be more than just the precious metals.  The Goldman Sachs Industrial Metals Prices index is treading water just at the 480 level.  Positive momentum appears to have flattened out as well.   And the Dow Jones-AIG Agriculture sub-index is also showing signs of exhaustion.  It makes sense.  When you see a lot of main stream media stories about a particular investment, it's dependably past its prime, and well past the time you should be investing in it.   Is oil next?  It continued on its upward course today, with light crude closing at 118.  We'll have to wait and see. 

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