Have gold prices already bottomed out?
Posted on 18 June 2009 with no comments from readers
Extrapolating charts is notoriously difficult but in these charts we can clearly see the $707 low for gold last November and the more recent low point of $925 set this Monday. Could these be the bottom prices for gold?
You have to wonder. The new investment demand that supports higher bullion prices looks very strong, and recent calls to monetize gold are manna from heaven. Any sign of inflation and gold prices would rocket.
On the other hand, a repeat of last autumn’s equity crash might drag gold down again. This kind of event is dollar positive and therefore gold negative, at least in the short term.
These forces are pulling in opposite directions and might leave gold prices range bound until they are resolved. But it is just a matter of waiting for gold prices to go up, nothing has happened to reverse the bullish outlook for gold prices.
