First off, $1200 an ounce is what it costs the miners to produce gold. Miners have recently been doing great - this obviously adds support to the gold price. The closer gold gets to $1200, the less miners will be interested - the supply will drop and the price goes up. Fundamentally, gold can't really stay below $1200 in the year 2014 and beyond.
Many people are banking on September being usually the best month for gold - and for all the right reasons:
Geo-political crisis may ease - and gold will need to show that it can support itself without Ukraine and Russia providing support.
In summary, I do not see much of a downside here and we could see a breakout to the 1400-1500 range very soon. Long gold! Shorting gold is an 'old' idea that will fade away very soon.
Many people are banking on September being usually the best month for gold - and for all the right reasons:
Geo-political crisis may ease - and gold will need to show that it can support itself without Ukraine and Russia providing support.
In summary, I do not see much of a downside here and we could see a breakout to the 1400-1500 range very soon. Long gold! Shorting gold is an 'old' idea that will fade away very soon.
