Friday, April 22, 2011

Gold Prices To Correct

Above is an arithmetic, weekly-bar chart of the Gold based ETF, GLD. Prices are very close to reaching the trendline. A correction will likely ensue after that contact.

Will Rahal gave a minimum 1500 target, based on 6 times the 2001 low of $250, observing that a six-fold appreciation often occurs in a given period's favored asset class. This round number, and the 6 X phenomenon, is another reason to expect a correction.