Peter Grandich Bullish On Gold, Declares U.S. Dollar 'Dead'
Posted on Jun 11th, 2007 with stocks: GLD, IAU
gold.seekingalpha.com
Trading Desk submits: Gold prices continue to meet resistance at the US$700 level and have fallen to the US$650 range recently. While Peter Grandich doesn’t think the decline should be a serious concern in terms of technical analysis unless the US$635 level is breached, he nonetheless acknowledges that recent failures around US$700 do not paint a pretty picture.
“The pattern here does indeed suggest a more profound retreat is possible,” the author of The Grandich Letter wrote in a commentary, adding that gold is clearly on the defensive and could be weak, but only in the near term.
Mr. Grandich remains bullish, suggesting that the secular gold bull market is in great shape, with nothing to suggest it is ending.
He points to gold’s inverse relationship to the U.S. dollar, physical and investment demand, geopolitical issues and market manipulation in support of his views.
And what does he think the first question gold investors should ask themselves: What direction is the U.S. dollar heading?
“My answer has been constant now for quite some time – the only party that doesn’t know the U.S. Dollar is dead is the U.S. Dollar,” he said, adding that gold and the greenback move in opposite directions roughly 85% of the time. |
