Curtis Hesler, editor of Professional Timing Service told Forbes yesterday, Gold has finally decided to back off, and there should be a bit more selling before this correction is over. Gold posted three highs at the $1,430 level during November and December last year, which were finally exceeded this spring. Normally, when triple highs are broken, prices will surge short term and then correct briefly before resuming the rally. This is the correction that is unfolding now. Once it is completed, I look for gold to advance to $1,800 later this year and to above $2,000 in 2012.
Marc Faber in the latest issue of the Gloom, Boom, and Doom Report indicated, (He) Still likes gold as a long-term investment and recommends dollar cost averaging every month regardless of the price. However, when it comes to silver, He is more cautious, noting the recent run-up in the price. He expects a 20%+ correction in the metals complex because the inflation trade has become too crowded.
Nathaniel Crawford wrote in his article Don’t Sweat Gold’s Seasonal Weakness–Just Wait Until September – If gold continues to follow its usual pattern, it would lead to gold entering a slightly downward consolidation pattern between $1350-1550 for the next few months, depending on the action of the general market. Then in September we should start to see gold creep higher to new all-time highs above $1570.
Bottom line for metals – cost average your purchases in the short term then watch it grow as gold begins to surge forward starting in September.