Thursday, December 25, 2008

XAU is UP 100%

Since the October bottom the xau index is up 100% . Yes the market had been super volatile in recent months and the xau was down sharply to erase almost all of the first major bull wave gains. But still, it is amazing how quickly the gold and silver index recovered.

In my opinion this is a great bullish sign for precious metals and other commodities. While there is so much talk about deflationary spiral this tiny sector leads the way of recovery and show the market the great upside potential.


Sunday, December 07, 2008

XAU Update

In the last several weeks the xau index consolidated around the lows and the technical situation is looking a bit better.

Support is around recent lows , resistance at around 140 then 180.

xau chart weekly


Sunday, October 26, 2008

XAU Update

The XAU index lost most of it's bull market gains. During the last 8 years ( late 2000 to mid 2008) the xau climbed from a low of 41 to a high of 209 (~400%). Recently a major sharp and volatile decline took this index back to 63.5 (~70%). This is the worst decline since the 2000 bottom.

Whats next?

It is a fact that most of the bull market gains are gone , the XAU crashed through almost all the support levels and not much is left other then the late 2000 bottom (~41). In my opinion the first phase of the gold bull market is over , currently a bear market phase is underway. Its is possible that the bear phase might soon be over and a new multi year bull market advance should soon be underway.

Be patient!

xau weekly chart

xau monthly chart