Archive for 15/01/2011

Things turned bearish

Friday’s action was not good. Gold and silver broke support and the mining stocks are resting right on support.

We have a cycle low coming next week. So we could get another decline to round off the ABC correction - A down last week, B up this week, C down next week. Some analysis is looking at the $1300 level in gold as a target. We might not get that low. And if we go below that, well, things could get ugly.

What’s really going on, I think, is that the Euro bounced hard after so much pessimism regarding Portugal and Spain’s bond auctions - the Chinese came to the rescue. And the Euro going up meant gold going down, which has been a bigger influence than the dollar of late.

Anyway, there could be good buying opportunities next week.

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