This article is in continuation to our Youtube series called as, “Technical Wrap-up of the Bullion” In the first episode, we discussed about the Silver technical charts. In this piece we talk about the Gold Charts.
The Overview of the Charts
In general, if we look carefully both, the Gold and Silver charts moved in tandem for most of the year. Both the assets traded with a negative bias for most of the year. Therefore discussing the same thing again wouldn’t make sense, so if you haven’t gone through our Silver analysis video then we would recommend you through it first. Because the general idea remains the same.
The Gold and Silver charts more or less traded in a similar manner.
Here are a few instances to show this correlation between both the assets;
Gold Chart Overall
The image above shows the chart of Gold, we can clearly see that it traded in a very big falling channel also called as a trendline. Each rise was taken as opportunity to sell by the bears. It wasn’t until November when we saw a breakout above this long falling trendline. After that the precious metal traded with a very strong positive bias.
The interesting part is just like Silver, this precious metal too closed in the same range in which it started the year.
But in all this do you know Gold set a new record !!
What record? You ask me, Well I guess let’s find that out together
Gold from April 2022 to October 2022 made lower lows(from previous bar open) on a monthly basis. Now, you’ll ask me, so what, what’s the big deal over here! Well the big deal is that as far as I can go back in the Gold Chart (Monthly Time), this is the first time something like this has ever happened! A precious metal falling for straight 7 months.
If we look at it from a percentage basis then this means that Gold traded with a negative bias for 58% of the entire year.
How Digital Gold Sips helped Investors make money in this historical bearishness?
A small weekly/monthly SIP done in Digital Gold helped investors average out their positions at all rates. Therefore even though the markets traded with a negative bias for 7 months. Digital Gold SIP investors looked at it as an opportunity.
As the saying goes “Markets rewards patience”.
In the closing months of the year when the precious metal was back in the bulls territory, the Digital Gold Investors were properly rewarded by the markets for their patience.
Traders made a lot of money throughout the year selling Gold at higher rates, while at the same time, long-term gold investors made money on trend change believing in their investment.
Moral:- Market gives chances to each type of participant.
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