Gold Price Intervention is Normal

The GOLD PRICE broke a recent 1 week trend line, that made the short term traders nail the sell button all at once. The gold price moved nicely and gently down thirty dollars today. I believe this move down will not even show up on a 5 year chart.

Short term speculators that have no notion that there is an anxious intervention going on will pay the price and like Jim Sinclair says "may want to consider getting a cheaper hobby".

I stay with the plan that the intervention will not succeed in the long run and that the 4 week cycle will probably hold. The gold price low so far was put in just after a two week period during this correction.

It is not uncommon for a cycle low in this case the $880 level to be tested once again around the 4 week period but that did not happen today, the low was the $900 level today at the 4 week period . This to me is a bullish sign since it leaves the gold price with a higher low today. It is possible that consolidation could be extended with intervention and prolong the correction. I however will add to my long position in GOLD and my favorite gold shares early next week.

The "GATA Goes to Washington: Anyone Seen Our Gold?" conference in Washington, D.C., is on from Thursday, April 17, to Saturday, April 19, 2008.





GATA says in their full page ad published in The Wall Street Journal on Thursday, January 31, 2008:

"Gold's recent rise to $900 per ounce shows the price suppression scheme is faltering. When it is widely understood how central banks have been suppressing the gold, its price may rise to $3000 to $5000 or more."