Gold Correction Goin Onnnnn

Gold now in a correction mode, And this is quite normal in multi year bull market. A correction of 15% in the entire move is in the cards based on moving average cloud strategy. A Decisive move towards 1760-1750 bounce is short lived, So expect a pull back to 1675-1650 is normal for this kinda of retracement.Load up this pig for $2000 before the year end and 2250 by March 2012.

Shorter Term



Longer Term futures on gold is solid so expect rallies going forward on any correction.Gold is on steroids now so expect a violent moves of 50's /100's as the monetary system goes down.



Gold Bug Index:

Gold bug index has decisively broke to the upside value of 600 which was the key resistance going forward.So once testing 600 level back will give us clear signs of support, And there after will have huge upside in the index i.e 900 by end of March 2012.



So what are the implication of the index:

1.Positive Sentiments on GOLD markets
2.People flooding in more in precious metal sector.
3.Moving in safe haven.
4.Losing confidence in general markets.
5.Monetary system failing.


Gold Miners Index

This is very bullish chart setup.Money will flow in this sector as they get premiums in the expense of gold prices