Gold Below $500 An Ounce?Submitted by Doug Eberhardt on Thu, 02/04/2010 - 12:46
I wrote an article with this title about a week ago in response to a Money Magazine article saying gold was a "bubble" asset. I wanted to explain the current price action in gold.
I thought that article might help some understand what's happening with gold.
"Will gold go below $500 an ounce? While some gold bugs may be calling gold to fall to just below $700 an ounce, I don’t see gold falling much below that. But as I always say, a holder of gold cares not that it falls to $700 or lower, on its way to $2,000 and higher. The traders of gold would love to drive the price down, exposing the weak hands. Then they’ll drive the price back up. That’s what traders do. But the Dollar Index is the key. Keep an eye on it for clues."