I’ve read reports from 2 analysts who’ve been so consistently wrong on this entire Gold move over the last 10 years that I’ve got to go with the trend and presume that they will be equally wrong this time around. They’ve turned super-bearish after the break below $1500. A few months ago it was headed for $3,000 and now its going to $0. I don’t think so.
I guess its human nature to be bullish at the top and bearish at the bottom, but good traders don’t think that way; they are always looking for opportunities when everyone else is bailing out. Warren Buffet made his fortune that way by waiting for the correct timing.
Gold fundamentals haven’t changed; central banks continue to print Fiat currency at breakneck speeds and much of this excess paper will eventually find its way to developing economies in Asia and South America. These people have a much different relationship with Gold and the Fiat system than do western economies who’ve been so well served by the latter. Don’t look at the futures market, look instead at what happens in the physical market where Chinese, Indian, Brazilian interests continue to buy in size.
What we are currently seeing is the typical excesses of hedge funds trading with other people’s money. That will equalise sooner rather than later and then the real bull trend will emerge once again. I suspect that there are still a few nervous longs to get squeezed, and we may even see prices dip below $1,000, but I doubt it.