Attended the 3rd session of T3B Wealth Creation and Portfolio Management Gathering @ Kreta Ayer People's Theatre yesterday. It was a rather insightful sharing session by Keane with regards to current market conditions and some interesting trading ideas.
Keane touched on an important point which was with regards to the Obama management printing more money to buy up toxic US assets. This would eventually set off high inflationary concerns which would see the erosion of the value of the US$. Investors would thus see gold as a more attractive option for the preservation and growth of wealth. We would thus expect to see an increase in the demand for gold in the mid to long term.
A look at the charts show that now is not the right time to purchase gold shares as it is currently set on a downward trend, after breaking out from its Uptrend Support Line on the 2nd of April. The price will be testing the 200-Day Moving Average (84.95) soon and should that fail to hold we would expect to see the prices plunging towards the previous downtrend line and critical support level at 79.74. Will be looking to accumulate some shares at that level, using low K-line as guidance and break peak signals for entry.
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