Special Gold Report: Comex Gold's Price Action in 2008

Tuesday August 09, 2011 09:36AM

(Kitco News) - Many market watchers are looking at recent price action in many markets and trying to compare it to price action seen during the world financial market debacle that occurred during 2008.

An examination of the weekly continuation chart for nearby Comex gold futures shows the following: Nearby gold actually began to rally in August of 2007, moving from a low of $642.90 an ounce at that time, to a then-record high of $1,014.60 in March of 2008. However, in late March of 2008, nearby gold futures prices backed way off from the high to score a technically bearsish "outside week" down on the weekly gold chart. Prices then trended lower into early May of 2008, hitting a low of $849.60, basis nearby futures. Gold then traded sideways in a choppy fashion for a few weeks and saw a push higher, to $986.20 an ounce, in July of 2008. At that point the gold market embarked upon a choppy price downtrend and hit a low of $681.00 in late- October of 2008.

October of 2008 proved to be a value-buying opportunity for the gold market bulls, as nearby futures prices ralled from the low of $681.00 to a high of $1,004.90 by late February of 2009.

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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