It’s August - where are we?

Right at the moment gold is gearing up to tackle $990. It might get there early next week.

The dollar is looking very weak, and the general market is looking strong. A target for the S&P is 1060. It may go higher than that. There are folks calling for a major crash into end of year. Some think a serious decline is due, but it may not exceed the latest bottom in March.

Sometime soon gold will exceed $1000 in a big way. Recently it has gone up with the general market because lately the dollar weakens when there is no panic. But things may change when the market declines later this year, as gold may revert back to its traditional role of safe haven. However, if there is flight into the dollar there may be some momentary weakness in gold.

So very short term, we may have some consolidation just under $1000. But before long gold will likely hit a new all-time high. That will be the signal that the parabolic rise has started. In the meantime, it’s holding relatively steady as the dollar has bounced feebly and is just hanging on for dear life.

In terms of the 30-year cycle, so far it still seems on track. No real fireworks yet as the assault on $1000 still gathers steam.

I’m currently looking into allocated and unallocated ownership of gold at the Perth Mint in western Australia. More on that soon.

This entry was posted on 05/08/2009 at 03:14 pm and is filed under Gold. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

| Print