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Higher Prices Expected for Gold

Higher Prices Expected for Gold
By Mike Paulenoff, www.MPTrader.com

While the banks stocks implode, let's have a look at the pattern developing in spot gold, which is 10 times the price of SPDR Gold Shares ETF (NYSE: GLD). Spot gold prices pivoted to the upside off of the $800 level, which also coincided with a successful test of the Nov.-Jan. support line ($811) and the rising 50 DMA ($812). The two session rally (+5%) likely initiated a new upleg that should climb at least into the $850 area, and in the event that gold catches a REAL BID as protection against all sorts of implosions in the paper asset and banking worlds, we should not be surprised to see it rocket quickly to $925, and then to $1,000+. Then again, since when did gold ever act intuitively? Actually, between 1976 and 1981, when it acted like a hedge during a period of unabated inflation (The Jimmy Carter years). In any case, from a near term perspective, higher prices should be forthcoming. MJP 12:50 PM ET ($836.20)

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