X, yes, there is always the possibility, right now, even a good like;lihood that gold and gold stock will bounce sharply for emotional and technical reasons, first, gold has held above $250 or so, its low, for quite a time and the XAU looks pretty good. The only two problem, IMHO, that I believe prevents a long term bull (taking 330 out with a vengeance, and I should say, a move to $330 is certainly one worth playing), is that there was no "wash out" in the players, thus many marginal producers are left out there who can make a little money at the $280 to $300, and to survive these could throw gold on the market at these prices, and of course, the overhead supply from the friendly CB's.
Of course, I won't even bring into play the conspiracy theory which, if correct, will be the root cause putting a cap on gold if it dares getting much above $300.
Zeev |
