Friday, September 30, 2011

A Beneficiary of Political Indecision?

Take a look at this chart on gold:


Apparently gold is at an important point.  If it breaks below the green line, it is expected to drop substantially.  But, what if it doesn't?  Is this uptrend sustainable?  The chart covers only the last eleven years, omitting its $800 high some twenty years ago.

Gold could break its uptrend at any time, but I doubt it will happen before the high level of political uncertainty is reduced.