• 3 days 3 Semiconductor Stocks Looking Great On EV Demand
  • 5 days Robinhood’s $40B March IPO Is In Grave Danger
  • 6 days Are Bots Responsible For GameStop’s Massive Runup? 
  • 7 days Learning From Buffett’s $11 Billion Mistake
  • 10 days The Token Boom Spawns Digital Gold Mine in Art, Collectibles
  • 11 days The “Oil Of The Future” Is Set To Soar In 2021
  • 11 days Wealthy Could End Up Footing The Bill For States’ Budget Shortfalls
  • 11 days Could This Be The Hottest Commodity Play Of 2021?
  • 12 days JP Morgan Says Fintech Will Steal The Disruptor Show
  • 14 days Facebook Plays Dirty Down Under
  • 14 days Could This Be The Most Exciting Lithium Play Of 2021?
  • 17 days China Sidelines US As EU’s New Top Trading Partner
  • 19 days 3 Smart Ways To Play the Global Chip Shortage
  • 20 days Flying Taxis Are The Number One Speculative Bull Arena
  • 21 days Ocean Power: The Missing Link
  • 26 days Luxembourg’s Ultra-Secrecy Still Attracts Hundreds Of Billionaires
  • 27 days Robinhood Is Under Fire And Trading ‘Democracy’ Is In Question
  • 28 days Bitcoin Could Be Worth $12 Trillion In The Long-Term
  • 29 days The Biggest Tech IPO Since Uber … For Farmers
  • 31 days The Biggest Boost Yet for the Cannabis Industry
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

Setting the Table - A Look at Gold

This article was originally published on The Chart Store Observation area for subscribers on August 23, 2004.

We pointed out in our July 21 Observation on crude oil that we like to look at commodity charts drawn with "real" prices. For this Observation we are going to highlight charts of nominal and "real" gold prices.

The following chart is a look at the "nominal" price of gold since 1970. The all-time high was $850/oz. in January, 1980. The horizontal line around $430/oz. has been the "roof" on the price since 1990.

The following chart shows the "real" price of gold adjusted by the Consumer Price Index. The all-time high of "real gold" in January, 1980 equates to about $2,070/oz in current dollars.

The following chart of both nominal (blue line) and "real" (orange line) gold prices is drawn from 1982.

Chart 3 Notes

  • The orange trendlines have contained all price action of "real" prices since 1982.
  • Both the nominal price and the "real" price have formed what technical analysts would call a long-term base in the form of a saucer which we represent on the chart by the black line.

Summary points:

  • The saucer pattern of price action of both the nominal and "real" price of gold represents a multi-year consolidation and bottoming formation.
  • The upper orange downtrend line of "real" prices is slightly above current levels.
  • A period of sideways price action (a handle) might set the table to break above the downtrend line and old resistance at approximately $430/oz.

Back to homepage

Leave a comment

Leave a comment