Wednesday, December 14, 2005


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

I thought the market would find some short term support near 515 but the crowd is rushing for the exits and gold blew right through the 515 level. I do think a rally will start from the 498-503 zone and probably carry gold up to 520-25. I also think the market will drop to 475 after that rally. The 473 level is 1 and 7/8 times the 1999 low at 252.50.

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