Gold May Well End 2008 with a Gain for 9th Consecutive Year

Source:

“Gold is now higher than it was on January 2, 2008, closing above its 65-week moving average for the first time since October.”

Gold and the euro jumped up further as the U.S. dollar tumbled. Yesterday, the Federal Reserve lowered the Fed Funds rate to 0%, pushing the dollar down lower and gold and the euro way up.

Gold is now higher than it was on January 2, 2008 and may well end the year with a gain for the 9th consecutive year. Today, gold closed above its 65-week moving average for the first time since October. It will now show good strength by staying above this average at $854 (basis February), and it could rise to the September high at $907, and possibly to the July high near $979. Gold is solid in the 'A' rise above $800.

Silver is starting to catch up to gold but it's not as strong. Even so, it's solid above $10.50 and could rise to possibly $15. Gold shares are rebounding best...more than gold. The HUI index is solid above 242, and it could rise to 350. Keep your positions.

The other precious metals, platinum and palladium, are quiet near the lows and moving similarly to the base metals and energy...flat as recession woes continue.

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