Lower Bullion Prices Worth Your Patience
Source: GoldSeek, Rick Ackerman (7/7/09)
". . .wait for lower prices before doing any serious accumulating."
How far might gold conceivably fall over the next few weeks? As far as boredom dares to push it, we'd guess. However, we see no real urgency in the selling right now, only a tendency by some investors to lighten up out of impatience. Nor is it gold's recalcitrance that has tested investors' patience; rather, many have grown bored with the bear rally in stocks that has temporarily sucked the life from the precious metals sector. For, as long as stocks remain buoyant, it will tend to distract investors from the gathering financial storm that seems destined to push precious-metal quotes to new all-time highs. For your information, and no matter how bored investors become, we doubt that August gold could go much lower than $882 over the near term. And even if it did, the long-term charts would remain a picture of health all the way down to $810.
Silver looks somewhat more vulnerable, at least in percentage terms. The September contract settled yesterday at $13.275, but a test of early Spring's lows near $12 appears all but inevitable over the near term. If this is correct, the retracement from these levels would amount to a tad less than 10%. Because we never like to chisel these forecasts in stone, here are bullish trigger numbers, first for September Silver: $14.425; and then for August Gold: $966.80.