Kitco.com contributor Clive Maund provided an interesting Gold Market Update on August 9, 2009.
Gold’s technicals have been looking very promising in the recent past, but there have been two worrying developments over the past couple of weeks which suggest that we may be about to see a vicious shakeout rather than the breakout to new highs that so many are anticipating. One of these developments has been the very high number of advisors calling for an upside breakout on public websites, as many of you will be aware, and the other is the trend of COT data, with the latest figures being at levels that have in the past almost always signalled a reversal to the downside.
As of late,Â many analystsÂ seem to be calling for a collapse in the dollar and a massive upswing for gold. While this may very well be possible, especially considering the doom & gloom expected to hit in September, perhaps there will be one last hurrah for the dollar and a final buying opportunity for gold before it goes, as bugs like to say, to da’ mooooon.
At SHTFplan, we advise that any pullback in gold will most likely be temporary, and therefore, should be used as a buying opportunity to stock up on gold assets. We’d love to see a short-term, temporary drop to under the $850 level! Since we’re daydreaming, let’s shoot for $750 and make it really cheap to jump into some opportunities like we saw last November. We’d shy away from shorting gold here and leave that to traders with elephant-sized cojones.