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February 24, 2010 / Jeb

Gold Finding Support at $1000, Long Term Chart Intact

I have found over many years of trading that being able to take a step back from the noise and the news protects me from being shaken out of long term trends and major gains.  “Overtrading” is a fault that I have learned to overcome.  I try to focus on the big picture and see the forest rather that just a tree.

Recently the dollar has had a major rally versus other currencies because of the fear of governments defaulting on debt and deteriorating consumer confidence.  I believe this fear is shaking out short-term buyers of gold.  The dollar rally appears to be overbought and weakening.  I believe gold will find support here at $1050 as the 12 week correction comes to an end.

Look at the 3 year chart on gold.  I do not believe this is an asset bubble.  Quite the opposite I believe we are still in an early stage bull market for gold.  I am still bullish on gold and believe it is to be wise to be patient here even if it goes back to $1000 an ounce.

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One Comment

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  1. lou / Mar 5 2010 9:01 pm

    gmo ! yipeee! up 53 % today ! yahoooo 3/5/2010

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