Dan...
I agree with Hathaway on both counts -- gold is headed higher, probably by a fair amount, and this market is a suckers rally that will fail at some point when reality takes hold and folks take their profits rather than trusting the Greenspan put to protect them forever.
That said, this rally in the markets has yet to show any signs of being over and it will not end until enough folks look at the fundamentals and decide Nirvana is not in our future, while today there is a lot of profit taking in gold stocks, probably by folks that remember that the last time gold reached this area it was summarily pounded back down to significantly lower levels. Until gold can penetrate the $390-400 area and hold it, I do not look for a large move in the gold stocks and expect more profit taking into strength instead. Where I differ with some others is that I believe there is a good chance that gold will break through and hold above $400, and it could get well above that level.
Holding on to golds for now.
mlsoft
Market Data 
Markets 
AI
