Here are three myths about the gold price from elliotwave.com.
Myth One: The gold price rises during inflation.
The team at elliotwave.com say this myth has been busted because when the Federal Reserve raised short-term interest rates by a quarter-percentage point on Wednesday, the move apparently “set off alarms of rising inflationary pressure.” And, gold prices FELL to a five-week low.
Myth Two: The gold price and stocks move in opposite directions.
Again the team at elliotwave.com say this myth has been busted because, following rate-hike number seven, stocks supposedly stayed at a seven-week low as “investors were rattled by the Fed’s comments.” Again, gold prices also remained in the pits of a five-week low.
They also point out that blue-chip stocks have been falling in sync with the gold price for the past two weeks.
Myth Three: The news effects the gold price
They say this myth was busted because CNN money only reported that the Gold Price “tumbles after Fed’s comments,” But, elliotwave.com points out that the gold price began to decline after March 11.
The team at elliotwave.com on the 9th of March predicted that after gold price reached $447.30 an advance in the gold price would have been completed and that a powerful wave down would follow. Two days latter the gold price turned down and since then has lost 5%
You can get elliotwave.com's lattest prediction for the gold price by subscribing to their gold price forecast service.