Three, Two, One -- Gold Taking Off
Equities got clobbered onWednesday and this morning we are seeing some follow-through to the downside.Gold and silver rallied on Wednesday but not as much as you would have thoughtbased on the trashing of equities. However, both are joining the Jeffersonsthis morning and are “moving on up.”
As we have written many times, wedon’t look at gold as a safe-haven play; we look at it as a hard asset to whichevery portfolio should have some exposure. Although gold remains in theconsolidation phase, it looks like it’s getting ready to test the top end ofthe range.
The keys over the next couple ofdays are -- can gold get to the $1,220 level resistance level? Will $1,220reject prices, causing gold to sell off again? There is no guarantee, but weexpect gold to reach $1,220, resist, have a small pullback and then break outto the upside.
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