What’s next for gold? 
Gold Back at 880
Courtesy of Braunie at The Market Guardian
Gold is rising today, bouncing back from its sharp losses in the previous three sessions, with investors growing nervous as quarterly results and outlooks from corporate America are expected to start pouring in. As we speak the POG is 880 which is now resistance. This is the slow season for gold, prices will most likely be low through spring and summer when demand picks up and prices rise into the end of the 4th quarter.The time horizon for longer term gold investment/traders is 6 month intervals.
“Bargain hunters are lifting gold prices,” said James Moore, a precious metals analyst at TheBullionDesk.com. “However the metal is still at risk to further pressure short-term and could look to challenge the $845 to $850 area.”
As more and more of the printed money works its way into the system Gold will find more and more support. Single digit inflation (2-3%) won’t kick start Gold but the 1st sign of runaway inflation (4%+) will send Gold to new highs. It’s actually a good sign to see hesitation and concern regarding gold. The people at my local gas station have stopped talking about Gold so that’s a buy signal to me.
Chart courtesy of Bespoke Investments
“With a decline of 3% yesterday, gold is right on the verge of testing its 200-day moving average for the first time since early January. With the exception of a one-day spike on the day the Fed said it would buy US Treasuries (3/18), gold has pretty much traded down in a straight line”
In my opinion large institutional investors and hedge funds will be looking to reestablish their positions in Gold stocks including the junior miners. A few of my favorites in this area are (AUY ), (GSS), (KGC ), (ABX) and if you want to play an ETF the (GDX). The Market Guardian Gold Article.
