Gold Unfinished on Downside
Mid-Day Minute for Mon January 25th 2010
by Mike Paulenoff, www.MPTrader.com
by Mike Paulenoff, www.MPTrader.com
Be alerted when Mike posts an article
If my work in spot gold is accurate, then the SPDR Gold Shares (NYSE: GLD) has unfinished business on the downside that will break the Dec-Jan lows at 105.31 and 106.01, on the way to 103.00-100.00 to complete the larger correction off of the 12/03 high at 119.54. For such a new downleg to emerge, my suspicion is that gold weakness will be a function of a sharp surge in the dollar. The question is what will trigger a flight to dollars. Global stock market weakness? European economic and/or “union” disintegration? Or continued fears of a contraction in China?
