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Why buy gold after the recent plunges in price?
*Dow Theory Letters, Richard Russell, September 5, 2007
“These are daily plunges, and probably discouraged amateur gold-holders. But note that the third plunge bottomed far above the other two declines. Furthermore, gold is now fluctuating above its 50-day, and the 50-day MA is not only bullishly rising but it is above its 200-day MA.
It’s bullish when any item is above its 50-day MA with the 50-day MA, in turn, is above its 200-day MA — and both moving averages are rising. That’s what we have now. Gold looks bullish to me. The immediate upside target — to close above 700.”
*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.