| On the other hand, if the gold bull has started, then we may go to 900 gold or so before the first reasonable correction (to 600) occurs. Keep in mind that XAU at present levels is historically very low, especially if you take into account the fact that the broader markets are in a vicious bear market for 2 1/2 years. In my view, there will be one more attack on the 330 level. If it gets broken, gold will regain safe heaven status, jewelry supply/demand won't matter, and it will go to 900 in several years, maybe 450-500 this year. Tomorrow XAU 65 will get hit, which should provide a very strong support. In a bull market, XAU should not go a lot below 65. These levels (900, 500, etc) are not nuts, this is how gold runs in a genuine gold bull. |
