Gold Sudden Drop Provides Opportunity

Gold-coins.jpg

We pointed out in previous analysis that Gold was due for a correction.  Its down huge today, time to buy?

Gold dropped hard today, and the metal is starting to look attractive again with supports just below.  Last month we talked up gold in Gold Breakout of Bullish Wedge

We said:

Gold is hitting resistance that is likely to cool off this advance soon.  While some limited gains in Gold are possible in coming days, it may be a good spot to sit back, enjoy the recent profits, and wait for a better entry. 

Gold hit resistance levels and today declined in a dramatic fashion.  Gold will likely rebound somewhat first, but could settle moderately lower in coming days and test near the support levels as shown.  Notice that the up trend for Gold remains intact. 

Gold is becoming attractive again, and the next major move could take it up to $2,050.

Agreed that this may be a good time to pick up some of the precious metals. It seems unlikely that these price smack downs whenever they start making a run can continue indefinitely. We also noted on Tuesday (at Market Madness and Political Posturing) that given the run up in the metals recently a smack down was a distinct possibility.But Market Madness is decidedly positive on the precious metals complex medium/long run and view these correction as buying opportunities.Regards,Curtis - Market Madness