Decmber gold lost key support at 590 and below that 586/587. You con't argue with that kind of a move. The charts point to a retest of 560 should support at 576 break, but I think if that happens, the lows would most likely be closer to 545, around the January opening gap. We did close a recent gap at 579 and found modest support overnight, but it does not look very promising so far. However, a close back above 590 negates the bearish scenario. For now, patience would be the best course. Oil will find its footing at some point in the near future and that will be the trigger point once again. My longer term bias remains bullish on gold and oil. The possibility of a 70's stagflation scenario is still very much alive.
This entry was posted
on Wednesday, October 04, 2006 at 12:30 AM.
