Just 9 months ago Gold tapped a record high at record high of 1900+, since that 23 August date we have seen the price decline by 15% or 300 oz. Those who bought at the high were not wrong, just a bit early IMO
What we have seen is the correction, not a pullback. A correction shakes out the weak holders.
The main reasons for owning Gold
1. accommodating world central banks, low interest rates
2. Gold protects purchasing power.
3. the timing and technical component, the call is Bullish on Bullion. Sure it would be better to see Gold bottom at say 1500 and buy it there but my work does not show it going there I see it snapping back to the line at 1900 (the Key resistance, and then cracking the psych resistance at 2000 by the end of this year.
That sets Gold up for the next leg up for the next run to 2200- 2300
I believe that there are many years to run in this secular Bull Market in Gold. I report daily on Gold, Silver and Crude Oil and publish a weekly overall technical report. Watch for it.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.