“Clearly, much of the easy money in gold has been made for the time being,” says Leong. Leong believes that there are several supportive traits for gold, including that the eurozone is a mess, China is slowing, and high overall market risk.
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New York, NY (PRWEB) August 17, 2012
According to George Leong, contributor to Profit Confidential, if you’re looking to make money playing the long side in gold, you may want to wait a bit, as it’s no longer in a bear market. Instead, it is entering a holding pattern, not ready to rally much higher in the short term.
In the article “Gold Update: Precious Metal Stuck in the Short Term,” Leong says that the threat now is the 11-year streak, as gold is down 7.1% since January 1, 2012.
“Clearly, much of the easy money in gold has been made for the time being,” says Leong.
Leong believes that there are several supportive traits for gold, including that the eurozone is a mess, China is slowing, and high overall market risk.
“So while gold is currently stuck, I’m not ready to give up,” says Leong. “But then I would also be more careful in adding positions, whether in physical gold or gold stocks.”
According to Leong, the reality is that the current technical picture has a slightly bearish bias and is void of any buying interest.
“If you are trading gold, adopting a buy low and sell high strategy could work here,” says Leong. “A decline towards $1,525 would represent an excellent buying opportunity in the metal.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.