BULL MARKET IN GOLD HAS MUCH FARTHER TO GO

Gold and silver prices are rising Wednesday, bucking the commodities' traditional trend against a strengthening dollar. Gold firmly re-established itself this week as a safe-haven asset. Jumps in the price of gold on Tuesday were largely driven by Greece's debt rating being cut to junk and Portugal's rating, which was also downgraded. This caused investors to move to safe-haven investments, specifically gold.
The gold price has broken above all resistance and the last remaining one is the November closing high at $1218. Once that is surpassed, gold could jump up to the $1300 level before this intermediate rise is over. (The Aden Sisters, April 27, 2010)
Furthering support for a bullish outlook in gold, The Aden Sisters assert in their April 27 commentary, "This month's jump up in precious metals, resources, and oil reinforces that the lows in February were likely the lows for the downward correction." In addition, they note that gold's decline was relatively mild, which indicates the underlying bull market is strong – despite the fact gold's already been rising for nine years.
In other commodities, crude oil continues to hover at $82 a barrel, steady with prices from Tuesday's market close.
Stocks are rallying today after yesterday's selloff on positive earnings and anticipation that the Federal Reserve will likely keep interest rates at their records lows until further data builds confidence in the stability of the U.S. economic recovery. U.S. stocks fell sharply on Tuesday after Greece's debt rating was cut to junk and Portugal's rating was downgraded. Concerns about "the meltdown in global markets" have been offset by stronger-than-expected corporate results, said Peter Cardillo, chief market economist for Avalon Partners.
In other news, Republicans blocked Democrats efforts in the senate to commence debate on Wall Street Reform, while top Goldman Sachs executives, including the now infamous Fabrice Tourre, were grilled by a senate committee for more than 10 hours about their role in the financial crisis. In their testimony, Goldman executives continued to vehemently deny that they knowingly and maliciously misled investors. Testimony before the senate committee continues Wednesday.
Returning to precious metals, gold is continuing towards all time highs in both the dollar and euro, bucking the trend of traditional commodities. Analyst David Goldman of the Asia Times attributes this central banks continuing to flood the marketplace with currency in efforts to offset massive government debts. According to Goldman, the likely scenario is a portfolio shift out of currencies for investors and into gold. "If this happens, gold has no natural ceiling," he said.
Goldman's analysis, plus the continuing questions about China's gold position in the upcoming years points to what will likely be a continuing bull market for gold and a tremendous buying opportunity for investors in precious metals.