Is Gold Going Up Three Steps This Time?

With gold at $560+ one wonders if it is jumping to exceed the last high of about $575. This is always a good question for which one really has only guesses. It is best to watch the trend, currently up, and to realize that all trends continue until they turn. That sounds trite, but is very true. We must follow the major or long term trend which can be more easily defined than the short term.

For the last twenty-four hours, Kitco.com reports the low for gold at $548.50 at 3:32 yesterday afternoon and the high of $560.50 today at 10:06 (NY Times). Silver low of $9.37 yesterday afternoon at 1:02 and high of $9.60 at 9:53 this morning. That is quite a trading range.

DROOY is responding nicely to the increase in the price of gold. I bought more at $1.46 yesterday and the last trade so far today is $1.62. It is my hope that those without mining stocks did pick up a few shares. We will be watching the trend.

Gold is still bouncing around the $560 level. The dollar strength is likely to be short term as the longer term is down.

Best to each, Doug