Gold Takes A Breather

After making a new near-term low late yesterday morning, gold's been in a trading range. Spot gold's meandered between US$1,080 and $1,090 in that time period, and is currently at $1,085.40. This Marketwatch report ascribes yesterday's plummet to good economic data from the U.S.

A Wall Street Journal report quotes a gold skeptic:

"It's quite possible we have seen the peak in gold," said Erik Davidson, Wells Fargo Private Bank's managing director of investments in the western U.S. "In 2010, I think things will go back to normal, i.e. a growing economy, and normal takes a bit of fear away from gold."

Mr. Davidson says he thinks gold will trade between $800 an ounce and $1,200 an ounce for the "foreseeable future."

There's a balancing quote from a gold bull, who's cautious right now.


Speaking of caution, Mark Hulbert's latest column points to growing pessimism amongst gold advisors. His Hulbert Gold Newsletter Sentiment Index, a measure of optimism contained in short-term gold timer advisory services, has plummeted from +53.8% to +10.9%. Although not indicative of a bottom as of yet - typical bottom ranges are negative - it's veering in on one, from a contrarian standpoint. No wonder the column's entitled "Building a wall of worry: Sentiment picture for gold is rapidly improving."