John Hathaway – 9 Key Points for the Gold & Silver Markets
March 13, 2012
With continued volatility in the gold and silver markets, today King World News reached out to 40 year veteran John Hathaway. Hathaway is the prolific manager of the Tocqueville Gold Fund and he has achieved a 5-star rating from Morningstar. Hathaway sent KWN, exclusively, an outline of 9 key points in the gold and silver markets. Here is a portion of one of the 9 key points (all 9 points below): “The fact that gold has survived the negative news flow from the monetary and economic front is encouraging. If gold can withstand the apparently changing narrative that had underpinned a bullish stance on gold, it will be a sign of enormous strength.”
John Hathaway’s 9 key points sent to KWN:
Brief comments on recent market action and outlook for precious metals:
1.The recent sharp decline appears to have been another test of the December low of $1532/oz intraday. Gold fell to $1675 on March 9th from $1788 including a drop of $72 on February 29th. So far, the downside was contained near the 200 day moving average. From a purely technical standpoint, the uptrend in gold seems intact.
2. Still, we may see another test to shake out weak hands in the next month or so.
3. Gold shares remain cheap relative to the gold price, with robust earnings reports in the Q4 2011, and strong earnings are likely to repeat in the 1st quarter of 2012.