End Of Gold Run?

Gold is currently down over $50 an ounce right now! Ouch (assuming you own it).  We’ve been stopped out of a lot of our gold stocks.  A correction is part of any bull run.  I don’t think this is the end.  I think this will be a normal correction.  I’ve been writing that I was concerned about commodities in general.  You could continue to see a rotation out of commodities and into more general stocks over the next few weeks.  Wheat is down 5% today, Soybeans are down almost 4%, and silver is down over 7%.

I believe Gold will work it’s way down potentially to $830 an ounce.  The first stop is $950 where it is currently trading.  If it breaks that, then we’ll see another $100 an ounce come off of it.  That would still be very normal for the huge move its made.  Remember, it’s gone from $650 to $1000 an ounce since last August.  I still wouldn’t short commodities in general but would still avoid them.  We’ll get our chance to get some nice bargains.

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March 2008
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