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End of downward trend points:
By Wednesday gold was down 7 days in a row, and had gapped down on Tuesday. Tuesday was a big volume day in the gold markets. Volume is a sentiment indicator. Lots of fear showed up on Tuesday which is indicative of important bottoms. Gold hit the bottom of its channel. It's a good bet that gold has bottomed. Right below gold is its 200 day moving average line. A little further below that is its upward trend line of about 10 months in length. There is also support right here from the double bottom base that gold made several months ago. IBD's (Investor's Business Daily) proprietary momentum indicator shows gold deeply oversold right now.
Probably for the first time there is now fear of inflation in the financial media which is not good for the US dollar which is one of gold's main prices:
DJ WORLD FOREX: Dollar Down As Inflation Concerns Grow
Wed Jun 14 16:30:06 2006 EDT
By Isabelle Lindenmayer
DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The dollar is lower late Wednesday after a choppy North American session kicked off by stronger-than-expected U.S. inflation data.
Silver is in a similar situation except that it did not generate standout end of downward trend signals, but is providing a great second chance.
Gold is at a great buy price right now and is providing a great second chance.
Those buying right now are going to be happy campers by the end of this year.