Tuesday, January 03, 2006

Biggest One Day Gold Price Increase in this Gold Bull Market

Today was the largest single intraday increase in the gold price that has taken place (during the regular pit session) since the gold bull market began in 2001. The gold price closed up a huge $13.30. The second biggest increase in a single day was on May 18, 2001 when gold closed up $12.65.

What makes todays gold price increase different?

When the gold price hit $543.00 on the 12th of December 2005 the gold price increased $12.80 before falling back to close up only $1.30.

Dan Norcini pointed out in Letropolecafe.com the reason why this move was different to the gold price increase on the 12th of December. Norcini said "What makes this one look different is that the big move up on Dec. 12 last year occurred with the RSI already well into overbought territory above the 80 level. We are still beneath 70 on the 14 day RSI – no where near overbought based on RSI readings for the gold market."

There has only been one day that has beaten todays gold price increase in the last 21 years which was on September 27, 1999 due to the announcement of the Washington Agreement, the gold price increased $14.20.

The difference with todays move was that there was no market moving news. The gold price is increasing on its own supply and demand fundamentals.

No comments: