As gold hit $2420, it faced a little setback. With moving averages, I expected it to return to the 18-day average, hold ground, and then resume its upward movement.
I'll be very cautious with precious and base metals for the next two weeks. I believe any investment attracting herd buying or price volatility is likely to see a short-term bust soon.
Citigroup Global Research Global Head Max Layton says gold is on track to reach $3,000 in the coming 12 months. He also comments on what he calls “off the charts” demand for gold coming from China.
China continues to be the marginal buyer in the gold market, driving up the price. I expect that China will remain a robust buyer of gold going forward in support of the price.
You should not rely on the banking regulators to protect your bank deposits because they are under significant pressure from the powerful banking lobby.
The fall in gold, silver, and copper will be called a correction. The short-term bearish trend will be confirmed only if the falling trend continues next week.
We knew we'd see some resistance in the $2450. The gold market hasn't broken the uptrend, you'd have to get under these lows to do that – and the first support's at $2359.
