Sunday, November 22, 2009

GOLD : $ 1150.90

Charts don't lie!

As I've been saying in recent posts, persistant weakness in the USD, has given further impetus to the rally in 'risky assets' and Gold.

We are in a seasonally strong period for Gold, so we could be in for higher prices yet.
Overvaluations in the Equity markets worry me more than Gold prices at $1150.90.
Stock market expectations of future earnings, are far too optimistic at this stage.
Unemployment and lack of real income growth will continue to haunt the '''recovery'''
Disappointment and frustration in the equitymarkets will be drivers of a USD rally.
For now, I'm not a buyer in Gold, and will wait for a pullback before I buy in again.

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