Gold Prices Hit Critical Fibonacci Retracement Levels After FED Considers Ending QE ▸ Chart This!

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Following news that the Fed may end quantitative easing and a tepid jobs report, gold prices hit critical fibonacci retracement levels. From a technical perspective, these levels are worrisome as they could indicate lower prices and prove difficult to bounce back from; gold prices did recover, however, and luckily for us Gary Wagner of TheGoldForecast.com is here with another edition of “Chart This!” and a technical chart tutorial that covers these critical fibonacci retracement levels and gold’s bounce back. Before the tutorial begins, Wagner provides us his thoughts on some current market events. Will 2013 be the year of inflation? According to Wagner, the Feds have talked about keeping interest rates low, but inflationary indicators such as grains, milk products, meats and oil are up; data suggests that we are in a period of inflationary growth that shows no signs of decline. Regarding the stock market’s recent rally to record highs and what this could mean for gold, Wagner explains that investors will place their “hard earned investor dollars” into chasing returns and thus pile into rising stock markets, which he says will start reflecting in overall portfolios– but Wagner urges two important points in regards to this: 1- central banks are buying gold aggressively, and despite what some believe, Wagner think it’s not to prop up prices but because they “believe there is value there”; and 2- regardless of an investor’s portfolio, there is always a need to hedge a certain percentage of it using assets like gold, which will continue to provide a demand for the metal. Lastly, Wagner gives us his take on gold stocks before launching into this extremely informative tutorial– it’s the best free technical gold trading knowledge you’ll get all week 🙂 Kitco News, Jan. 10, 2013.

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