People has a love and hate relationship with this piece of metal, and yes, I am talking about Gold. Just not too long ago, many people love IT and were chasing to high of above $1800. Now, if you asked these people again, they have all shunned the metal as it has corrected much since 2013. But then again, most of the old folks prefer to keep this precious metal, my grandma was one of them. When she was alive, she always said that Gold is very good to use during war.
Both India and China are 2 of the 10 countries holding massive gold, both the government and the consumers. Here is the article if you are interested to know who are these countries. Remember, the news about Chinese mum buying few hundred tons of gold when the price first corrected. Who would have expected that it has corrected much more since and I hope it wasn't too painful for these mums. Over the weekend, I was reading few of these articles which are mostly negative about Gold. Below are the links to these article;
- India's love affair with gold may be over, as prices slide
- Has Gold Become a Bad Investment in India? - WSJ Blogs
- Gold losing its shine in India as price falls - The Straits Times
- China's gold industry ends 11-year bull run
- Gold Demand in China Slumps 52% After Buying Frenzy ...
- Gold is a buy under $1,000 an ounce; here's why it could get ...
Let's have a look at the technical chart and see what it is telling us.
It has corrected more than 25% from the high, and the last closing price is below the weekly 20MA and 50MA. In the mid term, this is a weak trend and likely to move downward. The next support level is around 1,200.
Would you be a buyer now or to wait on the side?