The return of Gold

Posted: February 11, 2014 in Uncategorized

Gold is creeping up the major resistance 1,172/1,175 while the market are rallying.

This tells you that the issues are not all finished.

I think we are re -establishing a bull trend in Gold, just wait for a catalyst (reduce tapering, research house price revision, another crisis). There is a lot of physical demand from the Emerging markets.

Historically there is another instance  in which gold performed in a similar way.

Gold in 1970 was $30 and, with the dismissal of the Gold Standard, went up to $200 in 1975. Then retraced to $100 (1976) and everyone was proclaiming the end of the Gold bull and instead went to $800.

We could be in something similar (Gold retraced 30% from the peak)

 

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