Could gold shares be approaching important buying level?
Posted on 17 June 2009 with no comments from readers
According to my old friends at www.golddrivers.com gold stocks are approaching an important entry point for buyers. As the website explains:
‘Gold shares came tumbling down hard since early June which translated itself into a HUI decline from 404 to 332. This correction seems to be coming to an end pretty soon since further downside potential seems to be limited. Strong support levels are to be found in the 323 – 333 area. Investors should pay attention to the recent down-trend (A-line), see chart above, and wait for the down-trend to be breached to the up-side. This could happen any moment now..’
It remains to be seen how gold stocks handle another market correction. Last autumn they tumbled with the price of gold, so history could repeat itself. But if gold becomes a safe haven in the next crash, this time could be different – and the obvious gold stock play of selling now to buy back later would not work. Is it worth risking it?
