Based upon today’s action it seems that gold looks like it might head down to $1,050-$1,070 /oz to come back to its longer term trendline. If it comes back to that trendline, it would be a good place to re-establish a long position or sell some puts on gold. The markets took the unemployment report as a sign that interest rates might be increased sooner, but the sad truth is that Bernanke is going to error far on the side of caution (inflation) by leaving interest rates alone for far too long. I am also looking for a further dollar rally in the coming days. When everyone is shouting that you should buy gold and short the dollar, it’s most likely time to do the opposite.
Gold falls over 4% on a healthier Unemployment report
