Richard Russell: Stage Now Set For Public To Enter Gold Market
December 11, 2012
With continued volatility in global markets, the Godfather of newsletter writers, Richard Russell, writes about the action in the Metal of Kings, Warren Buffett and the public’s long awaited entry into the gold market in a note to subscribers: “Where’s gold going? — As you can see on the chart below, gold has formed an almost perfect rectangle. The top of the rectangle has been tested three times, and each time gold was turned back.”
Richard Russell continues:
“Obviously, there are some powerful groups (the shorts) that do not want to see gold move into and above the 1800s. At the bottom of the rectangle, gold has found support at approximately 1575.
For the last two weeks, gold and the dollar have moved in unison, which is most unusual. At the bottom of the chart we see the slow stochastics, which are in the neutral or middle zone. Since the bull market in gold is still in force, I would expect gold, ultimately, to break up and into the 1800 + zone.