Never mind "the short-term vagaries of the gold market," Jeffrey Nichols says
Gold's failure last week to sustain gains over $1,790 an ounce triggered profit-taking by frustrated longs and technically inspired selling by institutional traders and speculators in "paper gold" derivative markets, so much so that the yellow metal briefly traded under $1,730 on Monday.
As
gold tumbled in recent days, short-term market psychology has, not surprisingly, turned increasingly gloomy -- suggesting
gold could possibly go lower before staging an inevitable recovery and renewed assault at the $1,800 level.
Nevertheless, we believe
gold will move significantly higher by year-end or early 2013, possibly recording a new all-time high in the next three to four months -- thereby rewarding those intrepid investors holding on to or augmenting their
gold positions despite the short-term vagaries of the
gold market.
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