Gold Price New High.

Apr 25, 2011 - Is US Greenbakcs going down the drain & taking all paper monies with it?

Gold, Silver Set Record High on China Buying Bets

Commodities – Metals

Spot Gold (NY Close): $1506.85 // +0.60 // +0.04%

Prices gapped higher through resistance at $1508.95, the 200% Fibonacci extension of the 3/7-3/15 downswing, to challenge the top of a rising channel in place since mid-March. A break above this boundary exposes the 238.2% Fib at $1533.44. The 200% Fib level has been recast as near-term support.

Precious metal prices soared in overnight trade following a report from Century Magazine that claimed China plans to invest some of its more than $3 trillion in FX reserves in various assets including energy and precious metals. PBOC chief ZhouXiaochuan has said the current build-up has exceeded “reasonable” levels, while independent reports have pegged the “right” amount of FX reserves for China at no more than $1.3 trillion.

Spot Silver (NY Close): $47.25 // +0.65 // +1.40%

Prices gapped above resistance at the top of a rising channel in place since late January, setting a new record high at $49.78. The metal is now in uncharted territory, making forecasting decidedly difficult, but deeply overbought relative strength studies suggest the threat of reversal is increasingly high. The channel top, now at $46.91, stands as near-term support.

The short-term directional correlation between gold and silver remains firm, suggesting the two metals will continue to move along the same trajectory. The gold/silver ratio has set a new record low however, meaning the cheaper metal is likely to continue outperforming its more expensive counterpart.

Daily FX | 25 April 2010 - read full post

GOLD RECORD HIGH

Monday Apr 18, 2011