We are quickly gathering evidence that gold is going to $850/oz support. Apart from the fact that was an import resistance back in 1981 adds to the likelihood that it will be an important support today. More current evidence is the fact that we are seeing gold pause between $900-915/oz. A break above $US935/oz would give evidence to the contrary, supporting a move higher by gold. That would need to be a convincing move to buy at that point.Markets often rally back to a supporting trendline, only to disappoint, and I think gold will do it on this occasion, so I am inclined to see $850/oz a more realistic outlook before returning to $1000/oz, and beyond.
---------------------------------------------Andrew Sheldon www.sheldonthinks.com
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