Now that gold has taken a hit and seemed to have leveled off, it looks like it'll be close to another buying opportunity, as we had to wait to see how far it would correct before rebounding.
With none of the underlying fundamentals changing in any way, it's only a matter of time before gold surges again.
Even though summer is the typical slow season for gold, I don't think that pattern is going to continue to hold, as the situation we're in is one that comes along very few times over the period of a lifetime, and we're in one now.
Some are even acting like the euro is going to continue to strengthen because the EU central bank head made the irresponsible and dishonest comment that the Euro Zone was in an economic recovery. I guess it's a miracle! It would have to be if you were to believe that nonsense.
The sovereign debt crisis hasn't been solved in Europe, and the European economy isn't recovering because Trichet says it is.
Although no one can be certain, it does seem gold has taken this hit well again, and should be poised for another push upward.
That doesn't mean it won't fall further, just that seems to have found support just under $1,200 an ounce, and from there it won't take much to make it surge forward, which should start happening soon.
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