Tuesday, February 17, 2009

The Flight to Safety -- Gold!

Gold continues to set new records almost every day. We have now surpassed $960/oz. Despite this, the price of gold has now reached its upper trend line on the daily chart (not shown). Unless it breaks out much higher, we may see a pull-back or consolidation if the trend line holds as resistance.
Silver is also setting new records. What does this tell us about the market's confidence in the recently-passed "stimulus" bill?