The Ultimate gold chart and most important chart of 2005

The chart I am about to show you is what I consider to be the most important price chart out of all stock, commodity or currency charts on all exchanges! I consider it to be very important because it will and can have vast implications for so many other markets and eventually elements of the very society we live in.

The yearly price bar gold chart to the left is quite simple but very powerful. What you are looking at are all the closing yearly prices for the gold market from 1970 to the present date of this posting. The indicator on the top of the chart is the MACD plotted against those yearly prices. Anytime the daily, weekly, monthly, quarterly or yearly MACD crosses to the upside, it indicates a possible bullish price situation. The longer the time frame the greater the forward implications to price. Yearly price charts plotted against MACD are EXTREMELY long term and have profound implications for any type of market. They show massive sea changing trend changes in asset classes. What you can clearly see from this chart is that we have a very bullish crossover on the yearly MACD on yearly gold. In my experience judging macd breakouts, usually the crux of the upward price move on a bullish crossover occurs VERY EARLY and very near to where the first bullish crossover occurs ( the darker red line crosses the dotted line). There is a lot of other interpretation of MACD that I will not do here, but it is also important to mention that the indicator has a very large psychological element. While the plain looking chart to the left may seem somewhat ‘dry’, behind the scenes it depicts a massive long term battle between the power of bulls versus bears in the gold market. And it decisively shows the bulls now have the upper hand, the momentum and the likely power to break through long not seen resistance levels.

This chart gives credence to the possiblity that gold on a nearer term basis will be successful in breaking the old 52 week high near 460 area.

This chart also tells us a clue that even if gold does some extended correcting for the remainder of 2005, the power of the upward momentum is so strong and so long term, that any selling pressure will with high probability be met with renewed and more powerful buying.

This is the most important price chart for 2005!

Thomas

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