Where are we in the gold/silver generational bull market?
"As gold approaches the $600 level there is some selling of gold shares. This is not uncommon as penetration of round numbers usually presents a problem to any tradable item. Fund managers will offload at these points because of this.
What is different about gold as it approaches $600 (which few analysts with credentials expected)? It will move above $600 with a probable overrun of our magnet at $612.
The US dollar has lost its morning gain and appears now as if the .8900 is within downside reach.
Geopolitics is a snake pit with Iran literally firing warning after warning at the West. Clearly there is a civil war in Iraq that will not go away. The assumption that one can control hate once instilled and inflamed is without precedent.
One opinion is the US and Iran will attempt to create a state in Iraq comparable to Finland in the cold war. Good luck guys because neither of you now control that rat’s nest.
Nigerian oil is of special character that makes it quite important to the world supply. Either the shaky government there give the rebels what they want (a piece of the pie) or supply problems will continue to increase.
Gold has a magnet at $612 which will probably be overrun. After that $682 and $887.50 will be exercising their powers on the price of gold.
Meanwhile all the zigzag in gold and gold shares is a waste of effort, emotion and money. Let the traders do their thing, but remember it is all noise and usually folly."
"Gold appears it will set a bear trap here before it actually goes deep into an overbought situation. The magnet is still pulling at $612. There will be some hesitation before $600 is met and passed.
You should be more concerned about gold going ballistic above $600 than how it plays at the round number syndrome.
Keep in mind gold and silver are only at the threshold of their generational bull market. As far as gold is concerned the pull from the front is $612, $682, $887.50 and $1650."