Last Updated on Monday, 13 April 2009 22:05 Monday, 13 April 2009 21:15

Gold as a commodity or as a dear metal has hardly lost its charm, but there had been a time when was languishing at levels of roughly $255 to $290 for a few years, and was considered an investment with disappointing returns. It faced stiff resistances at levels of $290-300 and always kept testing this band, and retracing, in spite of an infinite absence of supply from its first source in Africa. All this has changed dramatically when it broke this resistance in early 2002, and costs have shot up by a dazzling 250% in the last five years to around $625-$650 an oz.. This dramatic move started when gold broke its resistance at $300 dollars and hasn't looked back since. In fact, the low over the last 5 years was $300.65. It showed strength when it broke key resistances as well as its 200-day moving average on higher volumes in July 2004 to move past $400.

It gained momentum, and began to show break-out signals sometime in October 2005. Costs hit $500 in December, where masses of folks prepared profits, and this authorized the price to steady for a month or so.

2006 saw a near vertical rise for gold on extraordinarily high volumes, with gold hitting $700 and then making highs of $725.75 in May 2006, just before the cashflow crisis hit worldwide market. A long correction followed, which was inescapable after such a steep and swift rise, and gold retraced to half it rise. Q4 was steady, and costs moved down to $575 levels till October 2006. It is here that they stabilized and have come to a point where gold now trades at $625-$650 levels. Stockholders faced many worldwide issues in this time, as the US With doubtful events like these, gold did quite well and served its role as a safe harbor. In spite of all this, on a year to year basis, Gold is still higher by 23%.

Gold bullion now looks to be in the early stages of a long term secular bull market.

Any way you look at it, gold has been moving for the last five years, and seem to be heading for newer highs in the future years.