US $ is overboughtGold dropped because the US$ shot up and positions in gold were
sold to meet obligations. The US$ is overbought and it 's just a matter
of time before it corrects. Simple rule...markets always go too far especially
when they move on momentum. G,ABX,AEM etc. shot up Thurs by about 16% or so.
That was too much too soon. The dollar shot up Friday.
It will head down but more importantly big inflation in the coming months should be
very positive for the POG.
The masses are playing off of analysts forecasts more than I can recall in years.
Look at POT and AGU.....one forecast and all kinds of MC was wiped out.
Those businesses are cash cows and POTASH corp controls the price!!!
Oil may falll to 50 or 60 dollars...but not for long...demand will outstrip supply...
it will end up around $80.
Gold companies will spend a lot less with 60 or 80 dollar oil than 110 dollar oil
so their profits should increase which will be good for the sp.
all jmho!!!
GO G GO !!!!!!!!!!!!