Investing in Gold, Daily Price Action and Direction

Posted on September 25, 2007 , filed under Stocks | Print This Post

I wrote earlier that I expected to see some profit taking in gold and silver stocks and we definitely have seen a bit of that happening. I’m guessing that the volatility in gold and silver stocks will be limited to a 5-10% swing from current prices. Shares of many miners have seen a 20%+ pop since the announcement of an interest rate cut by the Fed on Spetember 18th.

I am looking for gold to trade in the $710-$720 range for another opportunity to buy shares in gold miners. In particular, I will be watching the list of gold miners I posted in my article Investing in Gold, Watch the AMEX Gold Bugs Index (HUI). I urge readers to bookmark that page and return to Raw Greed to check out which stocks and options I may be purchasing.

If the USD Index can drop below $78, that should save the day for gold and silver bulls. A USD Index under $78 should set course for gold to break $750 and for silver to break $14.

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