Gold rallies to 2 1/2 month high – where to next?
Posted on Thursday, July 3rd, 2008 | In Asia, Current Market NewsWhile the dollar dropped to a two-and-half month low against the euro yesterday, gold closed at a fresh two-and-a-half month high at $945.30 per ounce. Near-record oil prices, geopolitical tensions in the Middle East, and the continued weakness in the dollar have fueled gold’s latest rally.
Gold’s strength has caught me by surprise recently, as I expected it to remain in a trading range and retest the $850 level. But as strong as it looks short-term, now is not yet the time to get aggressively long. Reason: July and August are seasonally WEAK months for gold and gold shares.
Once I get the signals, my next target for gold: $1,250 an ounce.
Long-term, the fundamentals that have driven gold higher are firmly in place and keep telling me that prices must climb to an equilibrium level of $2,200 or better. Soaring demand, declining supply, surging oil prices, the declining dollar, profligate money printing, and hyperinflation all point to much higher gold prices.
Last 5 posts by Larry Edelson
- Chinese Researchers Confident of 8% Growth - January 7th, 2009
- China Accelerates Filling Up Its Oil Reserves - January 7th, 2009
- Cautiously, Steelmakers Raise Prices, Reopen Mills - January 7th, 2009
- Dollar’s fall last week is exactly what I’ve been warning about! - December 15th, 2008
- Real values ... real opportunities ... and real money ... - December 12th, 2008
 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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