As bullish momentum takes over, we could be in for higher prices in the days ahead.
Below is a chart by Chris Vermeulen, who acknowledges the currrent bullishness, but wisely takes a step back to take a look at the ''big picture''
Here is Chris Vermeulen's article on kitco.com
While I remain both a gold bug & bull, it's worth noting that the equity markets may be overly optimistic about earnings estimates for the second half of 2010.
The USD has been beaten down by the recent lack of risk aversion.
If market tremors re emerge, gold could sell off. Just to put things in perspective, a 20% sell off from the current level of $1273 will still mean that gold will continue to trade over $1000.
All that I'm saying is that fresh buying may be postponed for the time being, and that its advisable for long only, long term investors to wait for a pull back before jumping in at current prices!