Wednesday, February 29, 2012
Gold- continued to float higher
Gold is continuing on its prior uptrend. If you looked at the chart of gold priced in various currencies (here), you would see that gold had broken above its continuation pattern (mostly, probably a flag formation). The only chart where gold has not yet broken above that formation is when it is priced in Aussie dollar or Swiss franc.
The main reason for the continued strength in gold prices is the expectation of continued loose or easy monetary policies throughout the developed countries in order to combat deflationary fear or economic slowdown.
Chart: Gold's daily chart as at Feb 28, 2012 (Source: Stockcharts)