Jamie, I have heard that if the bailout bill passes, gold will go higher because of the inflation caused by such an infusion of massive amounts of cash in the market. But I have also heard that if the bailout bill does not pass, gold will go higher because investors will be running away from everything else and looking for safety in gold. What do you think? Thanks!
Not sure about the short-term, but I do think Gold is going to retest all time highs. The bailout bill will result in a near-term pop in the markets, but the recession will push prices back down after that. I don't think the markets will retest the October 2007 highs in the near-term.
If the bill doesn't pass, gold will retest recent highs even faster.
For full disclosure purposes, I wanted to let you know that I had been long ABX in my retirement account. I went long a few weeks back (bottom fishing). Today's gap formed a bearish island reversal, so I closed my position.
I'll try and follow up on gold later on. This market is very confusing.
4 comments:
Jamie, I have heard that if the bailout bill passes, gold will go higher because of the inflation caused by such an infusion of massive amounts of cash in the market. But I have also heard that if the bailout bill does not pass, gold will go higher because investors will be running away from everything else and looking for safety in gold. What do you think?
Thanks!
Aimable,
Not sure about the short-term, but I do think Gold is going to retest all time highs. The bailout bill will result in a near-term pop in the markets, but the recession will push prices back down after that. I don't think the markets will retest the October 2007 highs in the near-term.
If the bill doesn't pass, gold will retest recent highs even faster.
I see. Thanks Jamie!
Aimable,
For full disclosure purposes, I wanted to let you know that I had been long ABX in my retirement account. I went long a few weeks back (bottom fishing). Today's gap formed a bearish island reversal, so I closed my position.
I'll try and follow up on gold later on. This market is very confusing.
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