Gold and silver are on fire again lately. Today gold jumped $40 to close just a hair under $1800. Honestly I hope it wouldn't be too hyped. If too much attention is given to it, the uptrend won't last for long. Two weeks ago, I took profits from shorting Royal Gold (RGLD) when it plummeted to low $60s and I said it would a good buy if below $60. It didn't. On the contrary, it has bounced back strongly and it has come back to above $80 again today. I'm worried short-term as it is too far too fast. Technically speaking it has reached its strong resistance and has a high risk of reversing back. If so, it will create a double top, a bearish setup. If it breaks through this resistance level, then it is very bullish. I have already got in to some extent. Either way, it is fine with me. I will only add more if it drops again.
I happened to see some prediction about the gold future on Bloomberg today. According to some "experts", the gold price will be around $1812 by end of 2012, around $1830 by 2013 and it will plummet to low $1500s in 2014. I cannot help but laugh when I see this experts' opinion. I hope this is kind of widely held opinion so that no euphoria will be created for gold and silver. As I said the gold bull does not like spotlight. It wants to move up silently without public attention. The lower public expectation, the better for its uptrend!
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