Thursday, April 1, 2010

Gold Ready for a Rally?

Gold about to rally?

After the tremendous downward pressure on gold prices recently, the fact that gold came through holding tight to the $1,100 an ounce mark may imply it's ready for a rebound, and may jump up on a more sustainable basis on the higher end going forward, based on the support it received during the Greece sovereign debt crisis, even when it was pressed down some because of the weakening euro.

Even the usual inverse relationship with the U.S. dollar was interrupted at time by gold moving up in unison with it, seeming to say investors consider it as much of a currency as any paper money.

I think gold made a statement over the last month, and for gold bulls it was a bold and brash statement that it wasn't going down, and after holding during that time, we may just see a continuation of the gold bull market soon afterwards.

The only thing I see stopping that from happening is if an unexpected crisis again emerges in Europe from another nation in danger of defaulting on its debt, and that could push people toward the U.S. dollar again and weaken gold. Other than the unexpected like that, it appears gold is ready to surge higher in the near future.

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