Friday, December 16, 2005


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.

No comments: