Shall we wait for a gold price correction or invest now?

[GoldNugget]

Shall we wait for a gold price correction or shall we invest now? by Dr. Volkmar G. Hable of Samarium Technology Group posted at safehaven.com

First of all, it is always dangerous to jump on a fast moving train like gold. Sharp corrective counter moves can wreck unnerved investors and wipe out young trading careers. Therefore this question is difficult to answer. As a matter of principle, always go long near important support and short near importantresistance. The most important word here is "important". Don't bet your hard earned money on minor support and resistance lines. GLD has just completed a minor correction down and has bounced off important support at 54. The question now is, will it continue straight up or will another decline towards 50 follow? I would try the following in order to be on the safe side: buy GLD on a break of the blue trend line to the upside in the chart, and exit it on breakeven when a downside move occurs. Otherwise keep the investment. We expect GLD to appreciate considerably in the long-run. A main worry remains with the decoupling from the US-Dollar, which makes analysis much more complicated. Very few interest rate hikes are left in the US, very likely only one in March. This might support the US-Dollar and a keep a ceiling on gold in the first half of 2006. For the second half of 2006, or as soon as the rate hikes from the US Fed stop, expect a continued decline of the US-Dollar and further buying pressure for gold with continued price appreciation. Gold is in a long-term rally, expect more upside. But as usual don't bet your house on assumptions and look for risk-free entries.

[delkulara]

Invest now as they jack the rates,its true worth skyrockets.
Any stop of its rise is wall street illusion.
they can only bend the mirror so far before it breaks.