Gold reaches a major turning point

2007 has so far been a rollercoaster ride for gold investors. The metal fell nearly $20 in the first week of January only to make its biggest gains in two months a week later. So where next for gold?

On Friday, January 5th gold dropped nearly $20 while silver slid 60c. Those huge drops had all the earmarks of a selling climax, and I said so at the time. See my January 5th and 11th interviews with Jim Puplava, which were posted by him on January 6th and 13th.

A selling climax is easier to identify after the fact than when you are in it. But, it is important to try identifying them when they occur because they are important market features. A selling climax denotes a major turning point that marks the end of downtrends or corrections.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.