I guess the analysts could not continue to draw a straight line down with the ruler. All kidding aside, kudos on the call, and at least (if the call provided an impetus for the sell off) little guys can buy gold or precious metal stocks at more attractive prices.
With all that said, their thesis of a connection between economic growth and gold prices is faulty at best.
We closed our short trading recommendation on gold
We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels. Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.
With all that said, their thesis of a connection between economic growth and gold prices is faulty at best.
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