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Thieves abound in the paper markets... are you going to allow them to pick your pockets again? The monthly chart below suggests there's plenty of excess to be worked off over this summer and there's potentially much more damage ahead. Far too many gold bulls are once again pronouncing: " Back up the Truck ! " We have seen how this ends time and again. I would suggest this correction is about one-half way over in terms of price. I continue to be buyer of the physical metal, scaling in 10% for every $5 move below $388.20.
Off its top: the XAU has the following downside price levels with which to contend: 97.64 85.89 77.44 68.98 56.94 41.61 (*red denotes preferred range) The U.S. Dollar appears to be targeting 88 for now. Will it reverse? I believe so. Warren Buffett has alerted us all once again. We lean heavily towards fading media-induced sell-offs as they are manufactured and not to be trusted. Play the game, do not be played. John Mackenzie ©
2004 John Mackenzie Contact
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