Friday, December 16, 2005

Gold


Here is an hourly chart of pit and electronic trading in February '06 gold.

The market dropped a bit below my 498-500 target zone and then rallied. I think the rally will carry to 518 or so and be followed by another downleg. If the market breaks below 490 (and I think it will) it will be telling us that the 544.90 level will be the top for many months to come and that gold is headed back below 400.

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