Overnight gold fell to a support at $880/oz. This is a significant support because it broke an important trendline, having tested it several weeks ago. Based on this news, its likely that gold will fall at least to $US850/oz support level. I believe it will find support at this level. Why? Well for starters $850 was the resistance level back in 1981 when gold last peaked, so it seems probable that gold will find support their.I dont see much compelling evidence for a fall to $680-690/oz. Inflation is picking up around the world, despite not having reached a critical point. More importantly oil is getting to levels where it has historically caused a slowdown in the global economy. I will address this issue more in Market Commentary blog.
Andrew Sheldon www.sheldonthinks.com
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