It is time for the gold 1000 Party! Remember CNBC had that Dow 7000, 8000, 9000 and 10,000 party? I forget if they did it for all of those milestones or just one of them. Maybe they should start a gold 1000, 2000, 3000, 4000 and 5000 party too?
Wait, scratch that. I forgot, people are not supposed to be happy about gold reaching higher prices and milestones like that because gold is ‘bad’.
The spot gold price is trading over 1000 again in the early morning hours of Tuesday September 8, 2009. Congratulations!
It has been a long wait and the price of gold will probably hold 1000 this time instead of dropping like a rock only a few days later.
I gotta tell you it has surprised me how bearish and reluctant many gold followers have been in believing this current breakout. Many of the top analysts I follow have been reluctant to say and believe that this breakout is for real.
The large symmetrical triangle that was created by the gold price created a substantial picture of doubt over an extended period of time. Also, the large head and shoulders bottom formation helped that cause as well since March of 2008. These are long periods of time. The sideways price action becomes tiresome to watch and discouraging. It tends to train people’s mindset that this type of price action is to be expected for a long period of time.
This is why the sudden breakout that has recently occurred becomes so difficult to accept because most people’s mindset has become trained to expect low volatility and lack of progress.
I think it is difficult for the human psyche to make such radical 180 degree sudden shifts. It would be like asking someone to do a meditation session after a long dance party. I am not saying it is impossible, just difficult to process quickly.
So this is probably part of the reason why many gold pro’s are not believing this breakout. Understandably many of them are probably cautious just as a matter of trader’s discipline. They do not want to give a full bullish endorsement until they see full confirmation that the breakout is real and valid.
Amazing that the gold price sneaks in the 1000+ price during the wee hours of the morning right after a holiday!
Bull markets just have a way of making themselves invisible until the last minute…
Don’t make it obvious… keep it a secret, and keep marching along… slowly but persistently.