Huge Price Declines Forecasted to Continue Before Gold Bull Market Ends
Investors continue to debate on whether gold is or isn’t a safe-haven asset and are trying to figure out if this is the end of the Gold Bull Market.
Precipitous drop-offs in Gold Prices are actually a normal element of the larger bull run. It seems that the months of correction so far in 2012 are now coming to an end. When gold set a new all-time-high at $1,920 last year, it was traded three standard deviations above the 40-day line. Only twice before in the current bull market, i.e. in May 2006 and in March 2008, had gold been similarly overbought. Both times, significant corrections ensued.
Expect the continued support of gold in the foreseeable future because of the still fragile financial markets, the increasing skepticism with regard to uncovered paper currencies and the persistent government debt problems.