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Gold investor watch: Where are prices heading? (Part 2 of 2) (Continued from Part 1) Gold prices slide along downward trend
Looking at the trajectory of gold prices for April futures contracts, we see the emergence of a symmetrical triangle within a downward channel. The appreciating dollar is hitting gold prices hard, edging them down toward new weekly lows. On March 5, 2015, prices settled just below the previous key support level of $1,200 per ounce.
Pivot points for gold
Market sentiment on gold is weak. The next important support point for the precious metal is at $1,192 per ounce. If prices breaks this support level, current momentum could push gold even as far down as the next support level of $1,186 per ounce. Prices hit this mark multiple times already in both December 2014 and January 2015. Bullish traders, meanwhile, could see resistance at $1,200 and $1,220 per ounce levels.
Based on the gold price chart above, traders could go short if the symmetrical triangle breaks down below current levels and hits a target between $1,192 and $1,180. According to the channel, gold prices could trade between $1,180 and $1,220 levels in the short term. The relative strength index and the MACD (moving average convergence divergence) suggest gold could move sideways, making lower highs and lower lows. As always, the trend we’re seeing now could change with new developments on the macro front.
Falling gold prices make gold ETFs including the Market Vectors Gold Miners ETF (GDX) and the iShares Gold Trust (IAU) vulnerable. Plunging prices also negatively affect gold stocks including Barrick Gold (ABX), Newmont Mining (NEM), and Anglogold Ashanti(AU). Respectively, these stocks account for 8.64%, 7.48%, and 4.37% of GDX.
For the latest updates, visit Market Realist’s Gold ETFs page.
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PRODUCER |
CODE : AU |
ISIN : US0351282068 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
AngloGold is a gold producing company based in . AngloGold produces gold, copper, silver and zinc in Argentina, in Australia, in Brazil, in Canada, in Ghana, in Guinea, in Mali, in Namibia, in South Africa and in Tanzania, develops gold and iron in Australia, in Brazil, in Colombia, in Congo Dem. Rep. of and in South Africa, and holds various exploration projects in Philippines. Its main assets in production are CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO and CRIXAS MINE in Brazil, SUNRISE DAM GOLD MINE in Australia, NAVACHAB MINE and NAVACHAB in Namibia, YATELA, MORILA and SADIOLA in Mali, CERRO VANGUARDIA in Argentina, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG and CRIPPLE CREEK & VICTOR (CRESSON MINE) in South Africa, SIGUIRI in Guinea, TEBEREBIE, IDUAPRIEM, OBUASI and KUBI in Ghana, GEITA in Tanzania and TROUT LAKE MINE and CALLINAN MINE in Canada, its main assets in development are MOAB KHOTSONG in South Africa, MINAS-RIO in Brazil, LA COLOSA and GRAMALOTE in Colombia, KIBALI (KILO-MOTO) in Congo Dem. Rep. of and TROPICANA in Australia and its main exploration properties are HUALATAN and ER in Peru, MKURUMU in Tanzania, 777 PROJECT and RIVARD in Canada, LOUBOUGOULA, GOODPASTER and ALAMOUTALA (SADIOLA II) in Mali, BAMBADJI in Senegal, MORRO VELHO in Brazil and SIANA in Philippines. AngloGold is listed in Australia, in Germany and in United States of America. Its market capitalisation is US$ 9.3 billions as of today (€ 8.7 billions). Its stock quote reached its lowest recent point on November 23, 2018 at US$ 10.00, and its highest recent level on April 25, 2024 at US$ 22.78. AngloGold has 409 109 984 shares outstanding. |