*** Gold post *** Kaplan: He may be proven correct again, but if so it's mostly because the EU is now manipulating it's currency just like Japan and China. At 1.30 level, the EU cried uncle. Ever since then gold has been range bound. Looking at the 20 year chart of gold consolidation in this area certainly is no surprise. However, when you consider the long term fundamentals such as our fiscal and trade deficits how can gold not go substantially higher? Kaplans arguments for the most part could easily be applied at 500, 600 or 700. There is not a single reason given why this should be a "fair" value for gold vs higher levels. Historically speaking the last thing you want to do is follow the central banks. In the past they have always been sellers near the bottom and buyers near the top. I wonder what some of the English think of their CB selling when gold was sub $300? I think gold will breakout to new highs within 6 months or less, probably much sooner. The level of intervention in the markets right now is downright scary, but it should subside once we get past the election. When we finally do go to new highs people like Kaplan will be left in the dust. One or two more pullbacks prior to new highs? Wouldn't surprise me at all, but I'm going to keep a core holding since I suspect that this bull will leave most of the traders wishing they held.
I was buying today again, but laggards such as RANGY which look good to me from both an FA and TA pespective. Given the near term gains in most PMs buyers have to be very picky.
