The Gold Economy

Gold prices are rising in a steady upward trend. They have reached an important milestone of crossing over the psychological $1,300 an ounce and might be on their way to hit the forecast price of $1,500 by the end of the year.

Momentum traders and gold investors are benefiting from the upward trend of gold prices. In trend trading, a trader stays long with an upward trend until the trend is reversed.

Will the Upward Trend Continue?

Earlier, we pointed out to the fundamental and technical aspects of the recent gold rally.

Slow economic recovery is driving investors

By Jordan Roy-Byrne, CMT

The question now is not whether Gold will go higher. Most of us know the primary trend is higher and will continue in the years ahead.

The real question is three-fold:

1. Are you invested?
2. How much are you invested?
3. Will you hold on?

Going forward, as the bull strengthens and as more come on board the last question becomes most pertinent. Let me present you with some quotes that will elucidate my point.

Jesse Livermore once said:

It was never my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! Men who

By Chris McKhann

Put trading continues today as gold has risen to yet another new high.

The SPDR Gold Shares (GLD) exchange-traded fund is at $127.94 this afternoon, up 0.07 percent and just under its $128.24 peak earlier in the session.

The shares have barely taken a break on their way up since finding support at $113.50. The correlation between the GLD and the S&P 500 (purple line on chart) also continues to rise, now up to 0.85.

A trader bought 10,150 of the January 119 puts

The rally in precious metals is leading to massive takeover speculation in gold and silver mining companies.

All media outlets are talking about it. And analyst price targets on gold are now pushing $1,500 within the next 12-months. The fact that gold is up around 20 percent so far in 2010 and is poised to make its tenth consecutive annual gain only appears to be adding fuel to the rally.

And silver has pushed nearly 30 percent higher this year too – the ‘poor man’s gold’ is set to post gains for the seventh consecutive quarter. If it does