Barron's "Getting Technical" Columnist Still Bullish On Gold

One of the interesting divergences in this gold spill is the preponderance of technical analysts who are still bullish about the yellow metal. One of them is Michael Kahn, author of Barron's "Getting Technical" column. After starting off by saying that gold went through a needed correction, which gave momentum traders "a taste of market reality", he says that the recent parabolic rally could go back to its starting point of US$1000/oz. However, the demand for the metal makes a drop to that extent unlikely. The title of his article gives his post-correction call: "Gold's Next Leg Up is $1,350 an Ounce."

He ends by noting that the gold bull market is a multi-currency one, and with: "I consider the current smack down to be a necessary consequence of too many investors getting too bullish at the same time. Once the excesses are cleared, the bull market can resume. "