Thursday, April 06, 2006
Gold (@$600/oz.) To Head Still Higher
This is a brief comment on gold.
The psychological barrier of $600 per oz. for gold presented some hesitation (or resistance) today.
However, there is no doubt that the big players are pushing gold way above the $600 level in the not too distant future. We are talking about weeks at most.
In coming weeks and months, it is reasonable not only to expect gold to eventually touch the historical high it made in the early 1980s, but also to expect gold price to pass beyond that historical high, even if temporarily.
In view of the above, it appears that there is still substantial upside for gold in the coming weeks and months. There is much more risk being short gold at this level than being long.
Adding to the bullish factor is the dollar situation, which is far worse today than in the early 1980s.
Should gold pass $1,000 per oz., which is not impossible within the next several years, if it even takes that long, it may see such psychological impact as to precipitate a global crisis in the Dollar and other weak paper currencies.
We shall see.
The psychological barrier of $600 per oz. for gold presented some hesitation (or resistance) today.
However, there is no doubt that the big players are pushing gold way above the $600 level in the not too distant future. We are talking about weeks at most.
In coming weeks and months, it is reasonable not only to expect gold to eventually touch the historical high it made in the early 1980s, but also to expect gold price to pass beyond that historical high, even if temporarily.
In view of the above, it appears that there is still substantial upside for gold in the coming weeks and months. There is much more risk being short gold at this level than being long.
Adding to the bullish factor is the dollar situation, which is far worse today than in the early 1980s.
Should gold pass $1,000 per oz., which is not impossible within the next several years, if it even takes that long, it may see such psychological impact as to precipitate a global crisis in the Dollar and other weak paper currencies.
We shall see.
