GLD: Looking Good

Posted by Ray on August 4, 2009 under Main | Be the First to Comment

Gold has been on the move lately thanks to a weak dollar, but today we had a move that did not coincide with the dollars weakness. The dollar remain relatively flat today as gold added another $8.80 to close about $969 which has been a fantastic 2 day run.

I would wait for a pullback before opening a new position as there may be some near-term weakness in the price if the dollar firms here. I expect the dollar to continue its weakness moving forward which will be good for the yellow metal and I was very pleased with the flat nature of the DXY today and the upward price of all the precious metals. I am a long-term gold bull and think there is significant upside espcially if it can break and hold about the magical $1,000 level.

If the dollar continues its slid overnight, which it looks like it will so far, then tomorrow could be a very interesting day. The fundementals do look good for gold as production is down and demand is up. If Cina is in recvoery mode then that will put continued pressure on supply as well and if the US does recver this year, which I do not believe will happen, but I could be wrong, then there very well could be a strong move to the upside. It is also important to note that summer time usually provide a good buying opportunity as the price is depressed while the fall we usually see price appreciation.

Either way, I like it, but would wait for a pullback before pulling the trigger.