Gold: Is it Safe?
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Featuring views and opinions written by market professionals, not staff journalists.
In the movie the Marathon Man, Dustin Hoffman gets tortured by Sir Laurence Olivier with rusty dental tools. As Olivier digs the tools into the nerves of Hoffman’s teeth, he continues to ask the same question -- is it safe?
Gold traders and investors have been feeling the same way as we have been tortured by the sell-off that wouldn’t quit. For weeks, we have been targeting $1,180 in December gold and overnight prices fell to $1,167 and are now trading at $1,187. This price was as of 5:42 a.m. EDT.
The question -- is it safe? -- is hard to answer here. Our $1,180 target has been met. We are now watching to see if it will hold. The level should hold. There are concerns that $1,130 could be next but if gold can build a base around the $1,180 level, the bottoms could be in. Remember, nothing is guaranteed to be safe, but $1,180 looks like a spot to buy.