At the beginning of Phase III, if the dollar does not strengthen, you could expect, IMTO a slight bounce in gold stock (just as a knee jerk reaction to equities falling), but I believe that toward the end of Phase III, real panic will be seen in the equities market in general, and then gold stocks may be pulled down together with all other equities, and for a short time, the XAU might diverge from the physical gold itself. I don't follow gold and gold stocks close enough to determine their own cycle, I have stated earlier in this gold bull that I expected the first resistance to be present at $330 with a possibility of a spike no higher than $340, I think we got it, but I expect the $330 plus area to be revisited not too far out. I also had a retrenchment to the $308/10 area, and the only warning sign for the gold bulls should be a close of the physical under $297, that should be a bail out point from gold, IMTO. I do not expect such to happen for quite some time.
Zeev |
