Archive for 25/01/2011

How low will gold go?

Here is a piece that says gold will most likely hit $1300:

http://www.zerohedge.com/article/will-junior-mining-stocks-be-investment-2011?

However, there is the 200-day MA just beneath that at $1280. Timing-wise, the low could be this week.

The $1300 level corresponds to a reliable trend line and a MA that is slightly shorter than 200 days, which seems to be holding gold declines in the recent past.

In addition, there is a cycle low in silver tomorrow. The cycle low for gold was end of last week but obviously that spilled over to this week.

It’s time to think value. Gut-wrenching declines are the best times to buy.

|