Tags: skarica | gold | breakout

Indian Gold Buying Proves Gold Breakout is For Real

By    |   Wednesday, 04 Nov 2009 04:13 PM

As of late a lot of analysts have called for a rally in the U.S. dollar, a decline in the price of gold, and a decline in the markets.

However, because there are so many calls for this action I really wonder how large a dollar rally will be and how big a correction will be as well.

See David Skarica's Top Gold Stock Picks for 2009 — Click Here

One bearish argument against gold was that the IMF was about to sell a bunch of gold onto the market. However, the Indian Central bank sopping up 200 tons of gold shows us that again foreign central banks are looking to diversify out of the dollar.

This news has also pushed gold up to near $1,100 an ounce as i write. This is just another sign that this gold breakout is for real.

I have stated that November would be the time frame that gold would breakout. The Indian news was the catalyst but it fell within line of the seasonality strength.

After the huge move we have seen we will see a pullback, but this pullback should be purchased as gold continues its breakout.

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DavidSkarica
As of late a lot of analysts have called for a rally in the U.S. dollar, a decline in the price of gold, and a decline in the markets.However, because there are so many calls for this action I really wonder how large a dollar rally will be and how big a correction will be...
skarica,gold,breakout
194
2009-13-04
Wednesday, 04 Nov 2009 04:13 PM
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