Gold Falls After Climbing Over $1,000
By Paul Nowak • Feb 23rd, 2009 • Category: Broker CommentaryGold closed over $1,000 an ounce on Friday for the first time since March of 2008. The metal has rallied about 45 percent since October and backed off the $1,000 mark today as investors took profits from the sharp rally last week. The choppy stock market is leading more investors to buy gold as a safe-haven.
If you followed my recommendation in early February to buy gold, I now recommend taking 25 to 50 percent of the position off. The market has moved too far, too fast and is technically overbought. My new recommendation is for agressive traders to buy April gold futures on dips to $960, or wait for the $925-930 level.
