Red-Hot Resources

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Wednesday, November 08, 2006

Let's Take a Look at Gold

Gold pulled back sharply this morning. Is this the pullback we've been waiting for ... a consolidation of the big gains after its recent upside breakout? Marketwatch thought so...

SAN FRANCISCO (MarketWatch) -- Gold futures fell as much as $7 an ounce Wednesday morning, as traders mulled mid-term election results - a resounding victory for the Democratic Party -- by locking in some of the metal's recent gains.

Ah, so it's those darned Democrats at fault, eh? Ha-ha! Well, maybe not...

I have to say that gold is showing suprising strength here -- I was expecting a pullback after the big run-up the metal has had recently. A consolidation is normal and necessary for any bull run. But gold looks very strong. What is the metal trying to tell us?

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