Many people use the SPDR Gold Shares (GLD: 109.718 -0.162 -0.15%) to trade the price of gold. So, let’s look at a chart of the GLD now …
You can see that it took the GLD about 7 months to go from its peak in early 2008 to it low later in 2008. Then it took another 11 months for it to claw its way back to its highs and break out convincingly.
So where does the GLD go from here?
An easy way to get a price target is to take the movement from the high to the low — 30 points in this case — and add it to the break out. That gives us a price target of around 130 on the GLD. And it should take between 7 and 11 months to get there.
130 on the GLD translates to a price of $1,300 an ounce for gold. We should hit that sometime in the next year. And, interestingly enough, my price target for gold has been $1,300 sometime in 2010. I didn’t pick that number out of a hat — it comes from a chart like this, combined with fundamental analysis.
For more in-depth analysis on gold, point your browser to Jesse’s Cafe American. He always has great stuff.
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