We all make mistakes sometimes and I'll say the most encouraging thing about yesterday’s mishap was in its yang. As it sadly and embarrassingly turns out, I submitted a piece yesterday, titled Gold Is Today's Safe Bet
, that was unfortunately a piece written long ago.
I noticed a couple of readers asking me what’s up: “You’ve been pounding the table on this 1100-1125 gold bottom and now you’re saying 970.” I quickly realized my mistake. That in the morning’s action, with gold flipping, I had hastily sent out something that I thought would give readers some solid guidance -- I thought a bottom might be in.
In any event, emphatically, yes, I believe gold is bottoming here. I have long stated that gold should bottom between 1125 and 1100. We've already seen 1110.5. There's good reason to be optimistic. The key line is its short, semi-lateral downtrend line of the past five or six days. A break of around 1128 is a major positive for gold. It strongly suggests to me that there's a marked sea change tomorrow. Trade would probably be supported around 1123. To the downside, its hard for me to imagine gold taking out 1130 and going down to 1100-1105, let alone much past 1123ish. But I'm still a buyer at those levels.
Sorry for the confusion Minyans.
Positions in gold, silver
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