Gold prices

Looking at gold, it looks like the price is consolidating around the $ 1.200 level the last weeks.

I already hear the gold bulls “horning” that gold has reached a turning point and that prices will increase to new higher levels.

Looking at the gold price over the last year, we have seen a significant price drop from a level of $ 1.350 and the gold bulls want nothing more than a short term recuperation to that level again.

But is that really what to expect?

I am not so sure, specially in a regulated market like the gold market. For months gold has been in a downtrend and still has the possibility to go lower is my feeling.

For the longer term, I am bullish on the yellow metal, so my strategy is to accumulate. Specially if you look at the enormous amount of paper gold that is used to plummet the markets.

I heard that for every 300 contracts traded in the ETF markets, only 1 ounce is available.

Food for thought........but they are still able to keep the bubble alive for a considerable time.

Enjoy!