Quote

Aden Forecast "Concern the European debt crisis is spreading is causing nervousness. This spilled over to the metals. . ."

ReportGold
Date05/05/2010
Loaded Date05/06/2010
TitleCrisis Mode
Quote"U.S. stocks fell, European stocks erased their 2010 gains, the euro plunged and interest rates fell, while the dollar jumped up on safe-haven buying. Concern the European debt crisis is spreading is causing nervousness. This spilled over to the metals and resources, but it took a slowdown in Chinese manufacturing to push gold down.

The gold price has been gaining on the Greek debt woes as a safe haven, along with the U.S. dollar (see Web Chart). Investors are shunning all but the safest assets until this crisis is resolved.

Gold reached another new high on Monday and it's very strong by staying above $1150, basis June. It's now starting to approach $1200. If gold closes above $1185, it then could easily test the record high near $1218. Above this level it would be super bullish. Gold shares look good in spite of the decline today. The XAU index is strong above 168. Keep your positions.

Silver is moving with the base metals for now, as is platinum and palladium, but these precious metals will remain strong and solid above $17, $1600 and $475, respectively (see Web Chart).

The resource sector is getting a double blow, by the European crisis and Australia's proposal to add a 40% tax on mining profits. Our shares have been hit, but for now we will keep them because they are clearly oversold. Don't buy new positions yet. Copper and crude have support at $3.10 and $77, respectively."