The Rick’s Picks chat room was abuzz yesterday with anxious talk about a possible $100 swoon in gold over the very near term. Fears may have been stoked by a subscriber whose predictions have been prescient. Indeed, this fellow foresaw $60 crude when it was falling into the low $30s, and he was more bullish on stocks at their last bottom than just about anyone else we know. Now, although his long-term outlook for gold is quite bullish, though no moreso than our own, he’s looking for a sharp pullback as the summer begins. We don’t see it and are instead looking for an immediate push to $1008, basis Comex August, with a follow-through that carries to at least $1066. It is from those height that Gold could stall, according to our runes, but the odds are just as good that the rally could keep chugging all the way into the low $1200s before taking a serious rest.

That must be Karim Ghaidan’s forecast. Of course, if the bear market rally comes unstuck then the dollar will rally, and gold usually moves in the reverse direction. Or perhaps not if the bond market is also in serious trouble. Sadly there are no easy answers and holding onto precious metals looks the safest option. For you would feel a fool if gold took off and you had just sold!