Arhidas comments on Gold $370/oz or $320/oz?

  1. 753 Posts.
    Gold has seen high US$320s/oz before on two previous occasations.

    It has now formed a kind-of-triple top but the only difference now is that it managed to close in the $320/oz level for a few weeks and possible a month.

    This is constructive because it keeps the trend for rising prices intact.

    Where to next?


    gold is going to take the triple top and head towards the level where our beloved Reserve Bank put the kiss of death on gold back in 1997 when it anounced that gold is no longer relevant, the US$370/oz level


    gold is going to be reppelled back to the US$300/oz level.

    Two other critical factors that one cannot ignore is the percistence of speculators to keep on buying gold while those speculators that are short are covering.

    The other ofcource being that commercials are even more percistent in shorting gold at these levels while those commercials that were long have substantially reduced their long positions and took their profit.

    If one was fortunate to triple one's money in this gold rally than one would be sensible to sell 44.44% of one's holding in gold stocks.

    The probablilty of seeing $370/oz before we see $300/oz is perhaps odds on rather than against.

    However, greed is man worst fault.

    Arhidas has identified one other non-gold stock which is grossely undervalued and would accumulate this stock a cent or two below its current price.

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