- October 8, 2008
- Posted by: Ramki Ramakrishnan
- Category: Gold
Quite a few investors and traders whom I know have been betting big on Gold. For them, this post should should serve as an early warning of what is to come. Once the current strength wanes, the metal will simply fall off a cliff. The sell-off will be both swift and deep, and we shouldn’t be surprised to see the yellow metal down at $640 or even $560. There exists a small chance for it to retest its prior highs at $1,030 but I certainly would not recommend waiting for that level to get out of any long positions. Two immediate resistances are at $944 and $967. Your strategy should be to get out the moment you see it drop fast, especially after it reaches any of these above mentioned levels. For anyone wanting to play from the short side, the safer level will be as close to $1030 as possible. Here is the chart for Gold, with some comments scribbled on it! Enjoy.