Gold Indicator Shows Long Term Bottom Not In

By Chris Puplava12/14/2011
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With the massive plunge in gold over the last week or so, I thought it would be helpful to show where gold currently stands on a short and long-term basis. Just for reference, the green dotted line represents oversold conditions (buy) and the red dotted line represents overbought conditions (sell).

As you can see, on a shorter time horizon (2009-present) gold is deeply oversold and may experience a snap back rally:

 gold indicator 2009-2011
Click here for larger image

However, on a much larger time scale (2000-present) gold still hasn't reached oversold territory and looks to have further to go before putting in a long term bottom:

gold indicator 2000-2011
Click here for larger image

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About Chris Puplava

Chris Puplava
Portfolio Manager, Fundamental Analyst at PFS Group
Primary Tel: 858.487.3939
Other Tel: 888.486.3939
Fax: 858.487.3969
PO Box 503147 San Diego CA 92150-3147 USA

http://www.puplava.com

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