Gold continued backing off yesterday’s high of $890, falling as low as $870 overnight. As we write, the precious metal is trading around $880. While gold is a natural choice when facing a recession, we wonder, has it become overbought in the short term?
"Recession is a two-sided coin where gold is concerned,” reads the latest edition of Doug Casey’s Daily Resource Plus. “People have less money with which to buy things, including precious metals. But a recession will likely prompt the government to counter that by dropping cash from helicopters, if need be, thereby creating buying power at the same time as it stokes inflation.”
"For now, many are urging caution in the wake of gold’s big move,” Dennis Gartman, editor of The Gartman Letter, advised clients, saying to sell gold and buy the metal back around $825. “Gold has become so egregiously overbought that we wish simply to reduce our exposure,” he says.
"Recession is a two-sided coin where gold is concerned,” reads the latest edition of Doug Casey’s Daily Resource Plus. “People have less money with which to buy things, including precious metals. But a recession will likely prompt the government to counter that by dropping cash from helicopters, if need be, thereby creating buying power at the same time as it stokes inflation.”
"For now, many are urging caution in the wake of gold’s big move,” Dennis Gartman, editor of The Gartman Letter, advised clients, saying to sell gold and buy the metal back around $825. “Gold has become so egregiously overbought that we wish simply to reduce our exposure,” he says.
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