Where's the money shifting ????

In a world where equity markets have gone for a toss and global economy is weakening rapidly day by day, where's all the money going ????? Cash is king, agreed .... but what would be safest haven in these critical times ? The answer is my friend, GOLD. And the evidence is in front of us ..... Gold jumped 80 dollars in a day .... the most in a decade. One more intresting fact is that when the bear sterns crisis occured, gold touched a high of $990.

Technically speaking a bounce back in gold was expected from $730-$740 range. A resistance was expected at around $780 which did happen but once that resistance was breached it flew like a jetplane. Now I know many of you like me must have missed the rally, as I was waiting for some decent dip to create a long position in gold. And I would not advise you to enter at these levels. So what to do now?? Short it ? I woud'nt suggest that. The major resistance now gold faces is at $880-$892 range. $892 being the 200 dma. What I would suggest is that wait for a correction to happen and use the buy in dips strategy for gold. Major supports are at $840-$845 levels and further down at $780-$790 levels. And more the global economy weakens, more the gold prices will soar.

Check this website http://www.netdania.com/ for streaming Gold (spot) and Silver (spot) prices, and very good charts and tools for TA.

Happy trading and cheers

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