Gold Chart: A Feast for the Eyes

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 |  Includes: GLD, IAU
by: Bill Cara

With Reuters reporting that Alan Greenspan won’t rule out a 2007 economic recession in the U.S., the $USD turned weak, and gold popped another several dollars.

This chart is eye candy for the readers of this blog who read my opinion on Jan 3 that Gold was going to rocket from 600 to 750 in 90 days. One month to go, I think.

click to enlarge
12-month chart of GLD (NYSEARCA:GLD) - (1/10 oz, spot price):
gold 12 mo

click to enlarge
5-day chart of GLD (GLD) - (1/10 oz, spot price):
gold 5 day

What we need here is a Cara 100 Natural Resources Watch List (GICS 10 and 15 only). I’ll try to organize it.

My present thoughts are that, following the termination of the present bullish phase in Precious Metals within about 30-45 days, there ought to be a severe shake-out. The senior and intermediate producers are going to be priced very high at that point. The place to have capital invested is in the small (and riskier) ventures that have well-funded exploration and resource development programs.

With respect to the latter, I’m going to have the readers let me know what “stories” they like. Within the metals and precious metals group, I’ll be scouting for names at the PDAC 2007 (March 4-7). So, by mid-March, we ought to have a good list that we can monitor in a Cara 100 format.

Let me know if you’d like to participate. Should be fun, and hopefully profitable.