Everything has changed seriously when gold broke this resistance in early 2002, and costs have shot up by an amazing 250% in the last five years to approximately $625-$650 an oz! This dramatic move started when gold broke its resistance at $300 USD and hasn't looked back since. Actually the low in the last five years was $300.65. It stayed uncommonly silently between $300 and $400 for a year in-between, and was hovering around its two hundred day moving average for a lengthy period of time, maddening many traders by moving above and below it. It showed strength when it broke key resistances as well as its 200-day moving average on higher volumes in July 2004 to move past $400. It gained momentum, and started to show break-out signals sometime in October 2005. Costs hit $500 in December, where an enormous quantity of people prepared profits, and this allowed the price to steady for a month or so. 2006 saw a near vertical rise for gold on actually high volumes, with gold hitting $700 and then making highs of $725.75 in May 2006, just before the financial disaster hit worldwide market.
This autumn was steady, and costs moved down to $575 levels till October 2006. It is here that they stabilized and have come to a point where gold now trades at $625-$650 levels.
Backers faced many world issues in this time, as the U.S. Was handling the Iraq issue, Israel attacked Lebanon, North Koreans fired rockets as well as a nuclear bomb, and with a nuclear clash with Iran. With doubtful events like these, gold did reasonably well and served its role as a safe harbor.
With no regard for all this, on a year to year basis, Gold is still higher by 23%. Gold bars now appears to be in the opening stages of a long-term ordinary bull market.
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