Gold prices poised for a fall

The gold price is poised for a significant fall in coming months after a rally to $1000/oz. The attached chart shows that the metal is on the verge of a wedge break either up or down, and given the strength of equities and new-found market liquidity, I would expect weaker gold for the short-medium term. All of this liquidity will end up being inflationary of course, and I'm sure the various government treasuries around the world have not finished their spending spree.
I can see gold falling to a low of $US700/oz. That fall will like take about 2 months before we see signs of recovery. This will hit gold stocks very hard I think, particularly those struggling with project finance or equity raisings, so I would be looking at opportunities among these stocks in particular. Perseus Mining would be one I would be particularly interested in.

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Andrew Sheldon www.sheldonthinks.com