In the world of investing, thereare bullish and bearish traders and investors. With gold, there are thebelievers that it is a safety play, hedge against an equity downturn andprotection against fiat currency. Gold brings out strong emotions, and you areeither a gold bug on a non-believer in what the metal is.
In either case, gold has been adud for months, and that does not appear to be changing anytime soon.Subsequently, we are now seeing the big predictions. Those against gold arecalling for $700; those for it are calling for $10,000. Both calls are meant tocreate a reaction of fear or excitement, and both calls are dumb.
Yes, gold could go to $700 or $10,000,but there are hundreds of levels in between those levels that will be testedfirst. Whether you are a trader or investor, you should stay away from thehype, the fear mongers and those trying to get you to react. The secret oftrading or investing is to listen to the market and follow the footprints itleaves. No matter what you read or hear from the media hype, gold is in a rangeof $1,180-$1,240 and until one of those is violated, all other predictions areworthless.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading