Tuesday, September 11, 2007
Gold chart: So where are we at?
Sometimes I get so hung up w/ the ratio charts that I neglect to do some good old fashioned nominal charts. Here's one for gold. This is a very bullish situation but as gold threatens the May 2006 high, short term risk will increase. Risk is different from a projection that the price will suffer a decline. After all, in 2000 the Nasdaq simply launched to strato-levels even as risk had long since become noxious. We will have to consider what is happening with the dollar as well as sentiment for gold. Regardless, I have been and remain very bullish in the big picture as the fundamentals remain superlative. The short term is noise; either a noisy downward reaction and buying opportunity or a major breakout for all the world to see. PS: Yes I know, the chart has some deplorable typo's. ;-)