What's Gold's Next Move: Correction or $1000?

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Even if we are due for a mini-consolidation as occurred last time, it would not be expected to last more than 2 months, and fluctuate 5% in either direction throughout the consolidation period.

Gold had been ripe for the latest $100 advance for quite some time. But this near vertical price increase has many analysts calling gold overbought, and predicting a correction in the short-term. So the question on the minds of many gold investors is this: Is gold really overbought and needing a correction, or does this upleg have room to run and a likely target of $1,000 by yearís end?

The commercial short position is at an extreme level and this historically precludes a drop in the price of gold. Many analysts also believe that the dollar is oversold, and are anticipating a rally in the coming weeks. Conventional wisdom supports the theory that nothing goes up (gold) or down (dollar) indefinitely, but are current conditions for gold really overbought and in need of correcting?...

Even if we are due for a mini-consolidation as occurred last time, it would not be expected to last more than 2 months, and fluctuate 5% in either direction throughout the consolidation period. But before this would occur, gold can be expected to climb towards the $825-$850 range. The consolidation would then be followed by a quick resumption of the bullís charge to the $1,000 mark. Some have speculated that we are already in the midst of this mini-consolidation, as gold has been bouncing between $750 and $770 for the past two weeks, but we think it is too soon to call. Jason Hamlin, www.GoldStockBull.com

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