GOLD & THE DOW BY DAVID N. VAUGHNWhile many folks are upset to see gold knocked back to 389 I observe something else at work. What I observe is gold’s successful fight to hold its ground & its refusal to go even lower. Observe the daily graph of the gold price on Kitco & you will see gold coiling like a spring to yet climb higher.
And what does all this mean?
It means that we are observing gold attempting to make 400 an ounce a floor & a bottom. And as gold is carving out 400 as a floor & a bottom it will yet position itself for even higher levels down the road.
"Dow 10,000 is acting more like a ceiling…”
And of course what this means simply is that from this point out its all down hill for a very, very long time. Now if you can truly absorb that the days of 10,000 Dow are behind us & that lower Dow prices are the coming trend what do you think this portends for the gold price?
Are you beginning to comprehend that we have only begun to see the early days of a gold bull market & a continued major resurrection for the gold price?
The 10,000 level is now a CEILING & a roof for the DOW. And 400 is quickly becoming a FLOOR for the gold price. Yes, we are seeing gold slowly building toward establishing 400 an ounce as a FLOOR & a spring board for a much higher price down the road.
And further evidence of events preparing to propel the gold price forward?