Friday, October 30, 2009

Freaky Friday


As I Twittered earlier today, "the market giveth and the market taketh away". Just when we think it's safe to dip back in the water out come the bears with a vengence on some lower consumer spending numbers out of the US. As the story goes, US dollar bounces up and the stocks get smoked.
What was remarkable though was gold's resilience. It was only down around $10 at the lowest point and even with the DOW down over 200 points and the US dollar up .40 of a cent it roared back to up $1 then closing down $1.40. We have never seen this play out like this before.
Something is happening here when gold survives that type of onslaught. In the past it would have been smoked $25 easy. The longer gold stays above $1000 the more confident I get long term on the precious metals.

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