Krystal Ball
posting dated 3rd June 2001.
Subject
to disclaimer on the Index page.
GOLD UPDATE
Gold-I
year-3rd June- (Source www.kitco.com)
Gold London fix has declined as quickly as it had gone up. Nothing surprising or nothing unusually bearish about this decline. In the last update we had cautioned that spikes in Gold are not copybook bull patterns. A nice five-wave structure is. Gold in the past has exhibited the tendency to spike up only to decline as quickly.
The current decline does not negate the intermediate bull picture given out earlier to about $325- $ 350.That will happen if the metal falls below the $256 lows of the year. Near term Gold may test the $263 and then the $258/259 level. Should the levels hold then the price might re-trace up in a 3-wave manner in the fashion of a Zigzag correction and then decline again.The eventual decline, as long as it is above the slope of the support drawn in blue line from the 2nd April lows should not discourage bulls. But a fall below the lows of this year is bearish.
End