With the most recent GDP numbers coming out of the United States revised much lower, it’s very possible that the market will continue to sell off the US dollar and head into precious metals such as gold. It’s very possible that the Federal Reserve may have to taper off of quantitative easing even slower than anticipated, and that of course means that the market will have to adjust for interest rate expectations.
Ultimately,
the market should continue to find lots of choppiness between here and
the $1400 level, and if we can get above that $1400 level, this should
be a nice buy-and-hold type of situation sending this market as high as
$1800 over the longer term. Pullbacks should continue to offer buying
opportunities going forward, and as a result we would be looking at
different buying opportunities with anticipation. We have no interest in
selling this market, and believe that there should be plenty of
pullbacks going forward that should continue to bring in buyers looking
for value. We believe that it’s likely that the $1200 level is the
“floor” in this market, and that the market will go below there again.
After all, the $1200 is a massive support level on the longer-term
charts, and as a result we think that the gold markets will be much
higher than current levels by the end of the year. We also believe that
so-called “smart money” is starting to enter the market, and take
advantage of cheap prices in a market that has been oversold for some
time.
