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Aden Forecast "Gold, silver and their shares remain strong, and they are the exception."

ReportGold
Date05/27/2010
Loaded Date05/27/2010
TitleRisk Aversion Continues
Quote"The gold price, USD, bonds and to a lesser extent the yen, are benefitting from the ongoing uncertainty. Concern that Europe's debt crisis will slow economic growth further has been the main driving force keeping the rest of the markets under pressure. Gold, silver and their shares remain strong, and they are the exception. All of our other positions, however, are extremely oversold and the downside is limited.

The gold price remains very strong within a soaring eight-week rise, in spite of last week's decline. Gold, basis August, is very strong by staying above $1,190 and, if it closes and stays above its May 12 record closing high near $1,245, it could jump up to possibly the $1300–$1400 level. Gold is the best, but silver is holding up well too. Its rise since February is solid by staying above $17.50. Silver reached an over two-year high on May 12; if this high at $19.66, basis July, is surpassed on a close, as well as closing above its March 2008 high near $20.80, then silver could easily take off. Gold shares are solid and firm while gold is stronger. Keep your positions in this sector.

Platinum and palladium are moving more in line with the resources, and we believe this sector is near a bottom. Both platinum and palladium remain strong above their February lows near $1,475 and $398, respectively. Copper is bottoming, likewise for crude, and both are holding at or near their February lows. Weakness will be over once they close back above $3.30 and $75, respectively."