caylus commits - thursday, page-101

According to Mark Hulbert of Market Watch, October is historically the worst month for Gold.

If history repeats, Gold could see much further falls yet. Capitulation by the bulls might occur and the Gold finally see bearish sentiment. A buying opportunity might then occur.

A fall back to around the 1400/1500 level looks probable.

Around the end of October, demand for gold increases with festivals In India, the Western Developed Economies and China, culminating in Chinese New Year.

So some run up could occur - but the recent highs around 1900 are probably safe.

A triple top in gold around February could then see some spectacular falls.

I'll do a Martis here. Anyone for Gold at 600?

On a more rational point, American banks tend to have an inverse relationship to the POG. So, if we do get a big fall in the price of gold - American banks should do well.

And that means enerally the stock markets of the developed world should do well too.

I'm not so sure that will flow on one-to-one to the developed commodity countries like Australia and Canada.

Good luck
Redbacka