Recent Gold crash looks like 2008 fall
Columns | 2012-05-16 10:05:53
Consider, for instance, gold's performance in 1979 -- a time in which the price of gold more than tripled within 12 months.
By Paul Ploumis
By Simit Patel
The chart below tells the story. I think gold is simply repeating what happened in 2008.
From this perspective, I think we're coming close to the conclusion of the retracement. I don't think we'll go past $1520; I think there will be many bids defending $1500-$1520.
I do think we will see more moves like this -- meaning more rallies that accelerate too quickly and then correct severely. However, I think there is a good chance we are going to get one move that is going to be much bigger than the previous moves -- one that may be strong enough to quickly take gold several thousand dollars higher.
Consider, for instance, gold's performance in 1979 -- a time in which the price of gold more than tripled within 12 months. I think another such move could occur, and that it may be even more volatile and explosive to the upside. That's what I'm waiting for and what I think many other gold bugs are waiting for as well.
Source: Forexpros.com
