Hi Wealthyjvd,Mate I am not sure if gold is oversold at this...

Hi Wealthyjvd,

Mate I am not sure if gold is oversold at this point but what we know is $UD is overbought and there are a lot of news pointing out to bigger probability that in time POG would have to go higher then $737, one of the reasons is the possibility of weakening of $US then the demands of physical Gold not the futures price will become too strong and the latest news on Dow jones is one of the Chinese Newspapers said today that The Chinese is considering buying gold of up to 4000Ts to top up their reserve of only 600Ts, now that could be true or might not be but logic must say that one of this days they will have to do that as they are already holding 1.9 trillions of reserve the biggest in the world so if they allocate just a fraction of it towards gold well the POG will have to go up much more.
You can't keep flooding the economy with cash and having interest rates close to zero without having inflation at the end.
What about general public in China or India they may start buying gold for protection they like gold that is their culture.
So many other factors that pointing to a higher gold in the future.
Today unfortunately the Shorts have come back and it looked that they shorted the stock towards the end and DOW went up last night and POG steady and yet again they managed to punish LGL so I would not be too surprise to see LGL going even lower for a while.
It looks that LGL respond more to Index more than POG unless gold goes up big time.
Mate it is only a matter of time so we can only wait, but may be there is a trading range for lihir from $1.60 to around $2.20 for the moment untill fundamental change ie $UD crashes or POG goes a lot higher or Barrick Gold make a move for Lihir or confirmation happens re Chinese buying 4000Ts.

Cheers.