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Every time a fall in the gld price occurs the financial press have a
field day writing off bullion as a major asset and consigning it to the
'just another commodity' scrap heap. All the furore about the quantity
of gold being sold by European and now Australian Central Banks clouds
the question of who is buying? The quantity of gold sold, and bought, is
not just a few pennys but billions of $.
Find me a central bank that ever sold near the top of a gold bull run.
The gap between $332 and $323 is still intact. This is not a great sign
for a major reversal. Before bullion can reverse trend it has to close
this gap and trade up to $325.
All the SA gold shares have had sharp price reversals during the past
week but look as though they still have some base building to do before
a major reversal takes place.
I detailed the 1 point reversal P&F count to 7800 on the Dow. This is a
100 point reversal chart so a move to 7900 or even 8000 is only one or
two points out. The main fact is that there is very little further
upside as the Dow has used up all its upside target potential and needs
at least a good period of consolidation before any further long term
growth can be achieved.
Regards Dr. Clive Roffey
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