A Well Earned Pause + A Quick Update

Posted by Peter Grandich via Michael Campbell

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Gold $1,236 – A Pause That Refreshes is Welcomed

Please don’t confuse a desire for some consolidation and new base-building with anything more than it is. Yes, it would be great to continue a straight up move but the history of this “mother” of all secular bull markets has been two steps up and one step back. This pattern has killed the perma-bears and bulls turned bears hoping to buy back in at significant lower levels.

Gold has often traded in some nicely defined channels and if it does it again, we can see a pullback here to as low as $1,185 and mean absolutely nothing to the bigger picture. I continue to believe my 2010 target of $1,300 to $1,500 is very doable. Besides, I love watching Tokyo Rose wiping off the blood and saying for the umpteenth time – “gold is not in a bull market and this pullback is the beginning of the end.”  What an indicator!



Quick Update

Stepping out for the evening but an update on some news of the day was needed.

First, the U.S. stock market appears to have weathered yet another storm and my bear suit remains in the closet (but is still available for immediate use). Gold is in need of a consolidation and even a 3-5% correction. Whether it does or doesn’t, my target for 2010 remains $1,300 to $1,500.

….read much more HERE