Gold was slightly lower from Hong Kong to the New York open on Wednesday, then declined sharply to near the noon hour, bottoming at $884, traded sideways through the Comex, but then got a rocket launch during the first hour of Globex trading, shot skyward by more than $50 in two hours, and finished the wild day’s ride at $941.50/oz., up $26.60. Overnight, gold has backed off.

Platinum declined through the Comex, to as low as $1030, then it too got a boost, climbing back to end at $1058/oz., up $13. Overnight, platinum is little changed.

Silver followed the same path, dipping to $11.90, then soared by nearly a buck to close at $12.89/oz., up 20 cents. Overnight, silver has edged lower. (Click here for charts)

After several days of listless trading, with a slight bias to the downside, the precious metals rode the rollercoaster in some very manic action

Let me start off with a morsel of clarification. I don’t hate gold. I own it, or more accurately, an interest in gold via gold mining shares.

And I believe a small allocation (5% to 7%) has a useful place in a well-diversified portfolio. Over the long haul, studies confirm it helps increase returns while minimizing risk. A benefit we can all agree is desirable.

But over the short-to-intermediate term - the next six to nine months - I think gold is a terrible investment. After breaching the $1,000 per ounce mark again, as I suggested would happen to my subscribers on February 2, it is overdue for a retracement back to roughly $700 per ounce.

Those of you who expected it to drop the day after I suggested shorting gold need to understand that “short term” doesn’t mean “this week.” Just because it moved higher doesn’t negate the point

Shorting Gold: 8 More Signs Gold is Overdue for a Correction

by Louis Basenese, Advisory Panelist Senior Analyst, The Oxford Club

Two weeks ago I told you it was time to start shorting gold. And the recommendation, as I expected, ignited a brew-ha-ha on our Investment U message board.

That’s because there’s not much middle ground. Most investors are either fanatical or supremely skeptical. If you have any doubt, check out the comments - and all the wonderful names I got called - on our website.

But since I’m a glutton for punishment, and since gold moved in exactly the opposite direction I predicted, it’s time for an update and a little clarification.

A Morsel of Clarification on Shorting Gold

Let me start off with a morsel of clarification. I don’t hate gold. I own it, or more accurately, an interest in gold via gold mining shares. And I believe a

Gold prices have fallen sharply to one-month lows this week. This is great news for investors, says Dan Denning. It’s a chance to buy the precious metal at a price that will soon be considered a steal.

Good news everyone. Gold has reached a one-month low. In fact, February gold futures on Comex fell the most in six weeks.

This is very good news. It means you will have a chance to buy gold at lower prices before it goes up higher later this year. Much higher, in fact, according to the 2009 forecast made by Diggers and Drillers editor Al Robinson.

Not everyone agrees that gold is going higher, mind you. “The deflationary scenario is still incredibly intact, even though the government has thrown trillions of dollars at it,” one Leonard Kaplan told Bloomberg. Kaplan is the president of Prospector Asset Management in Evanston, Illinois. “Gold has a long

Gold was steady until the beginning of the London session on Monday, when it began declining, a fall that turned into a near $20 plunge in the first few minutes in New York, yet that was not the bottom as the metal kept on sliding lower until it finally went flat on the Globex, finishing at $819.90/oz., down $33.70. Overnight, gold has edged lower.

Platinum was in positive territory until late Hong Kong trading, after which it mirrored gold’s path, taking a huge $35 hit as New York opened, down close to $940 before it rebounded slightly to end at $952/oz., down $47. Overnight, platinum is sharply lower.

Silver didn’t receive nearly as strong a negative jolt in New York, but it too was down pretty much straight through the day, finally closing at $10.62/oz., down 53 cents. Overnight, silver is trending lower. (Click here for charts)

It was

Gold peaked at $800 early in Hong Kong yesterday, but declined from there through the London session and into the second hour in New York, then traded essentially sideways through the Globex, to finish at $769.90, down $25.10. Overnight, gold has fallen further.

Platinum was rangebound with a slight down bias, ending at $893/oz., down $5. Overnight, platinum is sharply lower.

Silver bottomed just after the New York open, but then completely diverged from gold, shooting higher into the Globex, and only coming back a little late in the day to close at $10.03/oz., up 30 cents. Overnight, silver is trending lower. (Click here for charts)

It was a day of contrasts among the precious metals, with platinum little changed, gold dropping and silver soaring. With gold, investors were clearly looking to the rampaging dollar for guidance, with a slipping oil price not helping out either.

The Hightower Report wrote of

Gold soared from the beginning of London trading through to the second hour of the New York session on Monday, pushing as high as $875, fell into the noon hour, then rolled up and down through the Globex, finishing at $856.90, up $22.10 from Friday. Overnight, gold is sharply higher.