Gold bounce continues

  • Posted by
  • on July 5th, 2006

They will tell you it is because of North Korea testing missiles. They will drag out the gold bears and tell you this is just a bounce and the $700 spike was it. Trust me on this.

The price action is a result of the weak US dollar and the no end in sight to the housing dilemma other than rate cuts. With Gold at $630 after one billion rate cuts, imagine the possibilities of a late year reflation campaign.

That said, this morning’s rise to $630 is my excuse to sell down my gold position to a 5 percent portfolio allocation and ride my remaining gold stocks. It has now been a great trade but if I had any “balls” – was a yearmaker. That is why I am stuck writing and not retired to a white beach desert island.

I own NEM, GG, MDG,GOLD, PAAS, IVN, RIC, AAUK, AEM

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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