Gold price forecast 2013 feb15 2013

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Click on the below chart to see the zoomed recent time period for the above chart.

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As the world is not acheiving a stable economic environment, we ought to own some gold. This is my attempt to analyse the trend and identify a good entry range.

Gold has been in an uptrend for 3 years (late 2008 to around sep 2011).
It roughly followed the blue trendline.
The more times the price bounces from the trendline, the more important it is.

Gold is approximately on the confluence of the green and red trendlines. Confluence of trendlines is the point at which two trendlines meet and is considered an important lele.

If price is unable to sustain above the confluence, it is likely to fall and hit the red trendline. If it falls, the price will come around 1450 USD per ounce. That would be a good entry point to buy gold gradually over a period of 3-6 months keeping a stoploss of 10%.

If the price sustains above the confluence, wait for its behaviour for the next three months before deciding to buy. Visit my  blog for updates.
If the red trendline is broken, the price can see a fall of 10% or more.
This is a Gold price chart of SPDR Gold Shares (GLD) which almost follows Gold price in USD.
Multiply its price by 100 to get approximate price in USD oer ounce. Chart courtesy: yahoo finance.

Also see the youtube video on analysis of goldprice in different currencies:

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