Archive for 29/09/2010

Up - yup!

The Euro carried on to 1.36 with resistance possibly at 1.38, the dollar broke below 80 and gold broke above $1300.  Silver broke above 21.60 to finally get past its all-time high from March 08. Phew - the moment options expiration was over on Monday the buying pressure stepped in big time, despite a grand attempt to push prices down early Tuesday.

So yes, gold and silver look strong. It’s tempting to jump in, but how much farther is this likely to go? One target is $1420, another is $1350. So if that is attractive, then a small, tight position might make sense. A pullback is overdue but on the other hand there was a 38% retracement on Tuesday before the jump higher. The Euro could have a bit farther to go. Then beware a dollar reversal.

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