I apologize to readers who may have wondered whether I had simply stopped posting.  I haven’t.  My wife and I have been on holiday for the past three weeks, and I simply haven’t found the time to review articles and research things in my typical fashion.  I’m now back and you can expect a continuous flow of posts for the foreseeable future.

Interesting times!  A Bloomberg article today titled ‘Gold, ‘Off The Charts’, May Target $1,500: Technical Analysis’ says that “Investors should hold onto long positions in gold as bullion has “significant upside potential” to reach as high as $1,500 an ounce, Barclays Capital said, citing trading patterns”.  The article quotes Jordan Kotick, global head of technical analysis at Barclays Capital, as saying “Channel resistance currently is at $1,370; history suggests a run at $1,500” and “Taking it a step at a time, in the coming weeks, we view consolidation above $1,020 as extremely positive, targeting $1,050 initially, and $1,120”.

Notwithstanding I have been on holiday, over the past 3 weeks I have been saying to people I expected gold to move up significantly in price in a short period after holding around $1,000 for a while.  Yesterday gold did just that, and it appears this morning there may be more price increase to come in the near term.  I don’t know how much of this is ‘herd mentality’ getting the price ahead of itself, and how much is the result of serious ‘safe-haven’ concerns by investors.  I will be looking closely at this over the next few days and weeks and will comment when I ‘get back into the detail and know more’.  For now, it strikes me as oxymoronic that the Dow continues to go up in the face of the rise in gold prices, but perhaps I am missing something that people smarter than I see.

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