To 321gold home page

Home   Links   Editorials

Gold Update

Bob Hoye
Institutional Advisors
Posted Feb 8, 2010

Gold has violated the $1093 level and the recent support at $1074 decisively. If it is to now develop as a wedge from the December highs we should find support around $1044, the declining angle from the December 22nd low. Obviously, this would also become a test of the March 2008 highs ($1033). So far the break of the support line from October 2008 is looking much like the action in 2008 when it tested the 2006 highs.

Obviously, the rise in the US Dollar is having a direct impact on the nominal US price of gold. We find that the severest part of gold's breaks related to the currency are over seven days after the Dollar Index moves above its 50-week average. We are there now.

Gold chart

Technical observations of


Feb 5, 2010
Institutional Advisors

Hoye Archives

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Ltd