Monday, April 26, 2010

Gold Bugs Celebrating Friday's Upsurge

Peter Brimelow's latest Marketwatch column deals with the jubilation elicited by gold's Friday run-up above $1,155. That vault-up has got some predicting a further run:
...many gold observers are talking excitedly of a breakout -- for instance JSMineset's Dan Norcini: "What an impressive performance gold put in today! ... The climb higher was steady signifying that not only a sizeable bout of short covering was occurring, but also an influx of new buying was occurring. ... If gold can muster sufficient strength to clear $1,165, the bears are in trouble, as only $1,175 stands between them and a swift run to $1,200."

Others pointed out that gold's performance was even better than immediately meets the American eye. Gold in several currencies saw all-time highs.
As it turned out, the Kitco Gold Index made an all-time high on Friday, which Brimelow also mentions. He had nothing to say about the contrarian implications of the excitement.

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