Well, first it's important to understand that most people mistakenly think gold is a hedge against just inflation, but in fact it is also a hedge against financial uncertainty, which is why it held up relatively well during last year's collapse for most other commodities. Right now, gold is moving on what looks to be a lot of the same emotional and speculative momentum that carried oil, or treasuries to bubble highs. Today's big purchase by India was an external factor, as opposed to a fundamental factor for gold. It's definitely starting to smell like emotional factors driving things now, and I'm sure that today's action will help make the amateurs want to pile in even more and chase the rally. Combine that with the non-confirming action in silver and mining shares, and you have a combination that is dangerous over the near term. If we do get a bubble move, I'd expect it to come over the next several weeks.
The next leg down for gold will be atleast -$100 down Gold is just going up due to fear in the us economy WE dont knpow when it is going to fall but the day it fall,s will be like -$ 100 for sure and it will catch a lot of people off guard. LIKE OIL !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
where do you guys get your best Gold Futures related information...what website?...example: to know that India made the big Gold purchase yesterday...
Clearly there is heavy emotional resistance at the 1100 level. If it can't take it out I'd expect a substantial correction. If it can, look for amateurs and latecomers to pile in and give it one last frenzied push higher possibly to 1150 or 1200. Either way, I don't see the current rally being sustainable as long as silver and mining shares continue to lag, therefore I have trailing stops in place regardless of whether it breaks out or falls back.