Gold: Long Term Outlook Robust but Vulnerable Short Term

Michael Young submits:

Gold has benefited greatly over the past 18 months as investors sought a safe haven from the economic and financial turmoil. Since the worst of the banking crisis eased earlier in 2009, buying pressure has lessened slightly and gold has drifted closer to $900, returning from its brief journey above $1,000. Whilst the long term case is secure and attractive to many speculators, the near-term scenario appears to offer further downward potential, and a return to the 50-day moving average circa $875 looks highly likely.

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