From Investors Inteligence.....
UK Chart of the Day: 13 July 2011
Chart of the day: Gold flirts with new highs....
In times of severe market dislocations, people often turn to one asset they know well: Gold.
The recent sovereign debt crisis in Europe, for example, reversed the downtrend in gold. Prices rallied for six consecutive sessions, and edged above the $1,550 resistance (see right). New all-time highs are within striking distance once more.
Should one chase? On a short-term leverage basis, perhaps, as the day trend remains bullish. But on a longer-term perspective, we would prefer to wait for a consolidation to add, as equities may rebound. Meanwhile, the end of 3Q is noted to be a better time to buy gold. Thus we watch to add.