Double Top Forming In GoldDouble top and gold update January 7, 2008. Gold continues to form double top as we enter the second week of 2008. It is actually a three day consoladation between 856 and 873. A break below the lower end will be a breakout to the down side and a daily close below 853 will confirm the highs are in place in the FEB08 comex gold contract. There is some support at 820 but when broken we should see much lower prices going into Febuary and beyond. Update December 26, 2007... Double top in gold is noticable as we enter the last trading days of December 2007. This top could very well be the beginning of a intermediate decline that will take gold back down to the 700 dollar an ounce level in the next couble of months. Traders holding gold contracts will want to move up protective stops to just under 840 in the FEB08 contract. Silver is also weak at this time but expect a smaller decline, somewhere in the area of 10 to 13 percent. Once this decline is over look for silver to appreciate faster than gold once the $16 price is breached. Watch this blog for some very important information regarding the silver market once the decline is over.
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