Gold Update 03/23/2009

I am adding this Gold Update 03/23/2009 as a continuation to a previous analysis I wrote: The Case For Shorting Gold Using DZZ February 25, 2009. I still feel Gold will move lower over the next few months, even though I may be alone in this opinion.

Since I wrote the original article, Gold has gone from about $965 per ounce down to below $900, back up to the $960 area and is now moving lower once again.

Gold Chart

Gold Chart

Last week Gold spiked higher on the fear of inflation due to the announcement massive amounts of additional U.S. Dollar printing to combat current economic conditions. The spike held for 1-2 days, but that has been it so far. Since then, Gold is now starting to turn lower back towards the $900 price level. As I mentioned on the previous analysis, any considerable close below $900 should provide additional selling, so this will be the key short term target to watch.

Trying to taking advantage of a move lower in Gold, let's again take a look at DZZ. DZZ is a Double Short Gold ETN. I am a short term trader so I often use DZZ as my preferred method when I feel Gold will move lower near term. Here is how DZZ has done over the last 10 days:

DZZ Double Short Gold

Here is a look at a 3 month chart of DZZ:

DZZ Double Short Gold 3 Month Chart

A move below $900 in Gold should move DZZ close to, or above $24.00 in the near term. Here is another chart from my original analysis showing a possible target price range:

Gold Chart 5 Year

Return From "Gold Update 03/23/2009" To "Stock Market Commentary"

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