Why are technicians expecting $2,000 to $4,000 gold??
*Barron's, by Robin Goldwyn Blumenthal, February 23, 2009:
"GOLD HAS RECENTLY OUTPERFORMED NEARLY EVERY asset, and if history
is any guide, its upward trajectory is nowhere near finished.
John Roque, a technical analyst at Natixis Bleichroder, has lately been
focusing on an interesting phenomenon that has proven in the past to be
very profitable: The price of gold has surpassed the S&P 500. In
three previous cycles, when that situation obtained, gold outperformed
the large-cap index by a ratio of 2.5-to-1 to as much as 6-to-1..
With gold at $1,000 an ounce and the S&P around 770 points, the
ratio is now only about 1.25 times. At the end of January, Roque
identified $1,000 as just a 'first' target for the yellow metal, based
on his charts, and wrote that 'ultimately, we are looking for a new
high in gold.'
More recently, Roque averred that 'if you own gold here [above $960] it
is likely you aren't looking for $980 or $1032.70, [the March 2008
high] as your targets. You are looking for something much bigger. So
are we.' "
*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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