Wednesday, May 31, 2006


Here is an hourly chart showing pit and electronic trading in June gold. (I soon will be switching to the August contract which is trading about 6 dollars over June.) I last commented on gold here.

For the last couple of days I thought the market would continue up to its last top near 675 and then resume its downtrend. It only made it to 664 and the price action during the last hours is telling me that the market is now headed for 600 or so. I think that gold will drop to the 2 and 1/8 multiple of its 252 low which stands at 535 over the next couple of months.

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