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How to forecast gold prices? Two expert technicians discuss methods

Kitco News

The technical indicators remain bullish for gold, according to both Gary Wagner, editor of TheGoldForecast.com, and Jim Wyckoff, senior analyst at Kitco.

Although they arrived at the same conclusion, the two technical analysts used entirely different methodologies: Wagner is a proponent of the Japanese candlestick chart reading method, while Wyckoff focuses more on trendlines.

“Japanese candlesticks use the same four data points: open, low, high, and close. Rather than a bar chart, they simply draw a rectangle between the relationship between the open and close; close is higher, it’s green, close is lower, it’s put in red. So visually, while you’re looking at the same data, there’s more information in terms of visual cues,” Wagner said.

Wyckoff’s analysis combines several technical elements.

“In the past forty years, I’ve basically kept my teeth on the bar charts, so I stick with them. The powerful trading tools that I follow closely are trendlines, the nearer term or longer term price trend, depending on what timeframe I’m looking at. I also consider myself a student of the market, so I study the psychology, markets getting overbought, oversold, a herd mentality, too many traders getting on one side of the boat, so I tend to incorporate all of that into my analysis,” Wyckoff said.

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 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.