$950 Gold Just Ahead

Gold Stock Technician
"...the XAU now having gained nearly 16.04% from the absolute May 1st intra-day low. So what’s next from here? In our view, in all likelihood, “More of the Same”, as we continue to expect higher metals prices and higher prices for mining stocks in the days just ahead. For nearby Gold, we believe the path of least resistance is now to the upside with Monday’s higher close managing to break the August Gold out above the medium term declining tops line which has been in force for weeks connecting the absolute March 18th intra day high at 1033.90 across the lower April 17th peak at $956.20. That trendline came in at a reading of $902.00 on Monday, with the August contract ending at the session at $911.40. In our view, this is simply confirmation of a larger trend change. In our view, the next target on the upside for Gold is the $950 area, and we believe that an advance to that zone is likely in the course of the days just ahead." (5/19/08)

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