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Thursday, October 8, 2009

Gold update

As I wrote a few weeks ago we have been in a huge consolidation pattern ( an head and shoulder pattern) for Gold and the breakout to the upside has been confirmed and 1300 is the mid 2010 target now. Still we will top out in 2-3 weeks and have a pullback towards 950-1000 before moving higher the next months.
The rise of Gold should scare stockbulls as if central banks were really believing their turn around propaganda would be big sellers at this levels but we rather see central banks buying.
The short term top soon for Gold confirms that we will see an medium term Dollar rally as well with markets turning down soon.

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I am a professional independent trader