Gold is expected to fall back to a significant support level of $US850/0z in the next few days as the Federal Reserve considers ending its recent cuts. Gold has seldom been so cheap judging by an important historical gold value - the gold oil ratio. The ratio has fallen to just 7.5, suggesting the precious metal is oversold, though it has some downside yet according to my analysis, suggesting my target of $US850/oz remains good. I think we are looking for a significant rally in gold from that point.Andrew Sheldon www.sheldonthinks.com
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