by Clive Maund
GoldSeek
For those who expect gold to keep going up nonstop the past few weeks have been disappointing, but for more experienced investors and traders who like to “keep one foot on the ground” the pullback of the past few weeks across the sector is a blessing – let me proceed to show you why.
On the latest 6-month chart for gold we can see that it broke out to new all-time dollar highs and then above the “magic” $2000 level early this month, a development that brought forth a plethora of bullish articles and prognostications as you would expect, sucking in the less experienced at a top as usual. Gold’s action in doing that was actually very bullish, but as it did it at the end of a steep unbroken rally that resulted in it becoming extremely overbought, it needed to stop for a rest, and it has taken a rest over the past few weeks.