Weekly gold market review 17.10.14
September in the gold market is considered the best month of the year. October in comparison to September often shows a slight decline. However, this September, 2014 was rather a weak month for gold. And in early October, the level of the price of gold continued an even stronger decline.
According to the data for October 8, the price of gold moved down to the week resistance level of $ 1,220. Then it stabilized at $ 1,219. For some time before, the price of gold was supported by the Chinese investors that entered in the market. At that time the nearest support level was $ 1,200-1,207, and resistance level was $ 1,220-1,230.
However, according to experts, it is early to dismiss gold from an investment portfolio. Moreover, they assure the price of gold will stabilize. According to the World Gold Council, the role of the yellow metal will only increase in the market, because the development of modern technologies makes the rules. Now gold is used in many areas including industry and medicine. The demand in these fields rises every year, and this means that the further development of technology and medicine will have a positive impact on the price of gold.
Two famous Canadian investors share the opinion of the experts of the gold market. They are Eric Sprott and Jim Rickards, who advice to keep at least 10-20% of the people's assets in gold. So, upon of a severe economic crisis, people will be able to protect their capital.
Already on October 10, the price of gold rose to the strong resistance level of $ 1,230 and then fell down again. There was a high probability of rising to the level of $ 1,250.
It was clear from the data of October 13 that the price of gold would continue its growth. Last Friday the price stabilized at the high resistance level of $ 1,238. The probability of the growth to the level of $ 1,250 increased.
According to experts, today the economic situation looks suspicious, because the national debts of the developed countries are too high for so long. It makes the world economy out of balance. Investors are looking for alternative investments in assets with low risk and great prospects.
The far-sighted clients of the Emgoldex company use the moment and save their capital in gold. Moreover, they receive a stable and high income through the marketing program of Emgoldex.
Category: Gold news Publication date: 2014-10-17 08:22
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