Gold has taken a major hit today after a long rise since mid-January. The price is off more than $40 from the recent high last week. If the stock market rebounds significantly, then gold is likely to experience a significant retracement. Also, with gold having struck the $1,000/oz. price level, it appears somewhat overbought and ripe for a retracement. Since the price of gold has been close to the upper trend line for the past few days, I have anticipated the likelihood of a retracement or consolidation. Personally, I believe a consolidation is more likely. Today, we are seeing significant profit-taking in precious metals. Time will tell how much prices will drop.Tuesday, February 24, 2009
Gold Gets Pummeled
Gold has taken a major hit today after a long rise since mid-January. The price is off more than $40 from the recent high last week. If the stock market rebounds significantly, then gold is likely to experience a significant retracement. Also, with gold having struck the $1,000/oz. price level, it appears somewhat overbought and ripe for a retracement. Since the price of gold has been close to the upper trend line for the past few days, I have anticipated the likelihood of a retracement or consolidation. Personally, I believe a consolidation is more likely. Today, we are seeing significant profit-taking in precious metals. Time will tell how much prices will drop.
