please explain ... please explain , page-10

Gold goes UP as the markets and commodities go DOWN. Inflation and pessimism also help gold go UP. The Aussie dollar also goes down with commodities. This has been very bullish for gold recently.

Gold roughly doubled in price in Aussie dollars due to the depths of pessimism and plunging stock markets.

Now the pessimism is less deep, commodities and stocks going up (though likely temporary I believe), and even people talking about a turnaround in the economy in 9-18 months. Inflation is not YET a problem (end 2009 I reckon).

It is plain as daylight that the factors that caused the surge in gold prices, will lead to a FALL in gold prices when they reverse. Rises in commodities will always strengthen the Aussie dollar as long as we are a major resource exporter. Hence the Aussie dollar goes up and gold prices get trashed.

The time for gold is over for a little while while it corrects to its correct level for a recovering market and commodity prices.

As I said a week ago, I am very bearish on gold SHORT-TERM, maybe down to about $A1000 per ounce, but IF the recession bites further and there is more bad news, then it will rebound with strength. Gold is more liquid than anything else - so keep tight stops and wait for a bottom.

Just my 2 cents worth.