So any historic gold price chart should be after that date, as before it was not really relevant. That’s when President Nixon took the U.S. And it is visible on the chart itself.įirst, market-wise, the gold price started trading ‘freely’ with an open market in 1971, on August 15th. In other words why do we consider the gold price historic chart on 40 years more important than the 80 years chart or the 10 years chart? Why do we consider the gold price historic chart on 40 years so important? Ultimately, it pays off in your gold investments. Our point here is that it is imperative for gold investors to spend sufficient time analyzing the chart structures on the long term historic gold price charts combined with the shorter term time frames. In such a scenario we prefer to give the market time to show a direction. This is always tricky, as time frames are not aligned. IF the gold price historic chart on 40 years suggests that the gold price is heading into secular resistance but the 2 year chart shows a totally different picture then we talk about ‘divergence’. The opposite is true as well, and here it becomes interesting. So say that the gold price historic chart on 40 years shows a pattern in which the gold price is moving, and there is a similar conclusion from the 10 year and 2 year gold price chart it would classify as a ‘confirmation’ of the different time frames.
In the ideal world the longer term charts confirm the shorter term charts. These dominant trends influence both long and short term trends. That’s because the most dominant trends are visible on historic charts. It is crucial to always take a top down approach, in any market and for any investment.
The importance of any gold price historic chart When it comes to gold we would argue that the most dominant trend is visible on the historic 40 years gold price chart. The big problem with short term gold ( GOLD) price analysis as well as short term oriented gold news is that it distracts from what really matters, i.e.
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