Would you cut loss? Would you cost averaging? Or, would you accumulate at current level? These are a few questions from Gold investors since March 2013. What a difficult questions to answer... Here is our view on gold prices currently:
Our answer is to cost averaging or accumulate now, and hold it at least until September 2013. Why? Let's read on...
Lately, there is some good signs which favors gold prices in the short term:
- Federal Reserve chairman signaled records stimulus will continue until economy improves.
- Physical gold demand has surged after mid-April drops, especially from Asian consumers and central banks.
- US debt ceiling issue will be discussed again in September 2013, in which congressman will most likely to increase again, thus, printing more money.
If you're a technical guy, then let's look at the chart above.
A 'Double Bottom' pattern was formed and gold prices may rebound very soon. It will be a gain of almost 8% if it surges towards 1,500 level. That may not sound sexy, but, what if this occurs in June alone? One month 8% gain enough for you? Anyway, if we look at the chances of gold prices going up versus going down, which side got more potential?
Finance Malaysia blog is only giving all of you readers to have a good discussions here. Any comment?