Gold Prices Taking Off

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By Mike Paulenoff | Published 04/19/2006 | Futures | Unrated

Gold Prices Taking Off

Gold prices are going bonkers (or maybe is has not really started to go bonkers yet?) today. Time for a look at the very long-term picture.

Gold prices have surged above $621 today, which represents the 62% recovery level of the prior bear market from the $850 high in 1980 to the $251.70 low established in August 1999. Who cares? The vast majority of the time, when a market recovers or retraces in excess of 62% of the prior tend, a complete recovery or retracement follows. In English, this means that we should expect gold prices to continue higher.

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.

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