The case for the yellow metal

News abound calling the end of a historic bull run in gold.. The news of Dennis Gartman, one of the world's best known commodities traders indicated he had liquidated his positions - a shocking revelation as he was one of the few who had signalled the start of the bull run in gold through much of its run. Gold broke through, on Dec 14th, its 200 day moving average. For some technical analysts: a break below the 200 day moving average meant a breach of the last line of defense. And for traders who make rapid decisions on a short term fluctuation, the three most important indicators are the 20 day, the 50 day and the 200 day moving averages. For starters, the 20-day, the 50 day and the 200 day moving averages are now definitively pierced and the same conclusion still holds from my earlier post. That is a signal to sell. The next support seemed to come in at around $1400. However not everyone agrees. That position comes from the dim view of European saga as well as the US's financial woes. So what could the average investors do? Well, you could dollar cost average. You sell some of the position now and then buy more, if the price continues to fall more. The bottom line is : never make decisions based on emotions. For more information on this, please refer.