Technical Scoop – Gold Bubble! What Bubble?

GOLD BUBBLE! WHAT BUBBLE?

We keep hearing that gold has been in a bubble and the bubble may have burst. A quick Google punch with “gold” and “bubble” revealed a number of articles dating back to 2005 that talked about Gold in a bubble. We saw and read numerous blogs and an article telling us that the bubble is bursting for gold and oil is about to follow and “everyone will lose their shirts”. We have been reading dire forecasts for gold (and by extension, silver and platinum) for several months. Since then gold has gone up at least $200.

A well-known popular market guru also very noisily announced recently that he is abandoning his long-held bullish outlook on gold. Seems that the fact that gold appears recently to have abandoned its link with both the US dollar and oil prices has spooked some people. And of course the big $28 down day seen last Friday April 18 worried a lot of people. The comment was that gold doesn’t do that in a bull market. In the very short term he is looking very smart. But then only a few days have passed. [read more…]