Wednesday, March 19, 2008

Gold Plunges, Breaks Trend Line

Gold has broken through the light blue lower trend line in the upper panel. If it closes below the lower trend line, a bear market is confirmed by prices continuing below the low of today. Still, since gold is in a 5-year bull market, I don't count on the gold bugs to stay out for long. I plan to buy gold again soon. The fundamental conditions haven't dissipated that have caused the US Dollar to be the favorite financial instrument world-wide to beat up on. They'll be back!