What will help gold get to $682?
*Jim Sinclair's MineSet, by James Sinclair, September 28, 2006:
December gold has held well in the key area of $580 to $590,
resulting in the test of the $612 area. The pull from the front right
now is $612 and then $682. Support is good at the recent low. The
energy complex was a positive to gold early in the session prior to
inventory figures. General commodities came off their lows, some with
convincing action.
What gold needs to overcome $612 and move to $682 is the US dollar
to decline below the Fibonacci support level just under the present
level of trading.
Today's action in gold is being attributed to the early recovery in
energy and generally firm commodity market, which certainly does not
hurt. The price of gold needs a bit more help from the US dollar to get
into gear firmly. That will come.
I spoke yesterday on Bloomberg with an emphasis on how the basic trend
in the gold price is set via its currency relationship as an inverse to
the US dollar. I also referred to the impact of slowing business
conditions on tax revenues as the Formula describes.
Having lived and traded in the exact same circumstances, I have no
doubt concerning the veracity of the Formula. I am convinced the US
dollar is headed much lower albeit not without a battle royal at key
levels.
With the dollar as the main driver, noise like the general commodity
market action and oil will provide us with hair-raising ups and downs
within the defined bull trend of this generation bull market.
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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