Tuesday, February 23, 2010
Expecting Gold Rally To $1200
Global Consumer Confidence Takes A Toll On Markets:
The Ifo business climate index fell for the first time in eleven months, to 95.2 from 95.8 in January, below economists' forecast of 96.4. >>READ
Consumer confidence fell sharply in February as Americans turned more pessimistic about job prospects and the U.S. economy, the Conference Board reported. Just a month after touching a 16-month high, the board's Consumer Confidence index sank 11 points to 46.0 from an upwardly revised 56.5 in January. It's the lowest reading since April 2009. Economists surveyed by MarketWatch, who were looking for a slight drop to 55.5 points from the previously reported January level of 55.9. >>READ
Itz Stock Chartz continues to see a possible 'Relief' rally in the Euro by 3% taking gold to $1,200. Since Feb 5th one has to ask whay has gold rallied while the Euro has declined? This is unusual and since gold bounced off the 200ma tells me that the Euro is way oversold and a relief rally is coming. What could spark that, well Greece is bringing some bonds to auction next week and that could turn out to be a positive. Or if EU bails them out, but there will be a catalyst and that should take both Gold/Euro higher.
Longer term the charts are setting up a 'Bull Flag' formation.