What's Happening With Gold - Is The Trend Still Higher
Posted: Tuesday 12 September 2006 - Gold/Silver & Mining Section
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A lot of movement in Gold over the last month. A few weeks ago it was looking good pushing $650 then over the last few days it’s had the smackdown levelled to stand at sub $600.
So are the media right, have commodities and the metals seen better days? Is the trend now down for Gold?
The trouble with the media and most analysts is that they always base their facts on what the market has been doing that day or week. So with Gold heading down the reports are all gold bearish.
But as readers of this website will know we’ve been saying that short term moves of $50+ in gold both up and down are to be expected. It’s a commodity after all and one that a lot of people (Governments/Central Banks/Brokers) have a vested interest to see it lower.
In our view the sell off in Gold (down from $730) is nothing more than a natural retracement in an overall long term bull market. So until the June lows of $530 are challenged AND broken with conviction Gold bulls should use the knock down in the metal and the Gold shares to accumulate.
Remember, this strategy has worked ever so well over the last 3 years so until it stops working it’s the probability trade.
