Gold Bubble Bursting?

[Mad Scientist]

Gold has fallen from it's $1400 an ounce high. Down another $35 already today. Is this the end of the gold rally?
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[uscitizen]

DanG! You mean I will not get a 200% increase over my purchase price? what a ripoff.

 

[boedicca]

Bubbles always burst..it's just a matter of when.

The one countervailing force is inflation. The Obama Admin's ongoing efforts to devalue the dollar may provide support for gold prices in nominal dollar terms.

 

[Toro]

Maybe, but I don't think so.

Generally, bubbles tighten when monetary and fiscal policy tightens. We are nowhere near that yet.

But maybe it's different this time.

 

[Paulie]

It's a long overdue correction.

Gold was overbought big time.

Establishing new support and then continuing higher. There's not a damn thing to stop it fundamentally right now.

 

[Toro]

There have been a few corrections of 10%-25% since the gold bull market began.

 

[Paulie]

There have been a few corrections of 10%-25% since the gold bull market began.

Yeah the last one in October was pretty decent.

I'm still seeing higher lows and highs though. Support is around 1320. We'll see if it holds.