Mega Precious Metals Inc MPRXF

RE: RE: hopefully we can hold here

[hrattle]

US dollar is overbought...


It is reaching an interim peak - around 81(79 now) - but the real cycle is nearer the 88 level so this reversal could be short lived. An opportunity to exit before a bigger crash - the problems haven't gone away and the Fed's Twist hasn't kicked in yet.


...this is the seasonal strong India wedding gold purchasing period...


Diwali runs from Oct 24 - 28, however, all bullion buying for this festival is long over now - coins given as gifts would have to be made several months before the festival as would wedding jewellery. 


...in relation to Gold at $2000.00


Gold could resume it's bull run but it will not be to $2000 any time soon - the summer bubble has deflated and another bubble would be a very bad sign. If gold can stay above $1550 and make modest increases perhaps to $1700 that is much more healthy for the bull. A fall below $1520 is a bad sign with $1200 being the next significant support level. It could easily over correct below $1000/oz at it did when the 1980 bubble burst.  


...the move in gold juniors gets seriously rolling.


Gold juniors have been weak because capital is spread so thinly - there are so many poor quality juniors around taking needed capital from the quality plays. The industry needs a shake out - with the dross being sold off or bankrupted so that the quality plays can be fairly priced. A significant correction in POG could do this but the economic pains may delay this correction and thereby continue this weakness in juniors for some time.


All imho.