ThxPORTAL - My OnlinE InvestmenT ProgresS

Gold fell almost 5% [on Friday] to below $1,160 an ounce on the latest jobs data. Unemployment unexpectedly fell to 10%. Employers only cut 11,000 jobs in November. That's the least since the recession began, and less than the 130,000 expected cuts. This could be the beginning of the gold correction so many are predicting...

Economist David Rosenberg says we're in a secular bull market for gold. He says central bank purchases, led by China, will eventually push gold to $2,600. Like Jim Rogers, though, Rosenberg thinks the short dollar/long gold trade is crowded. He expects a short-term correction in gold of as much as 20%. That would bring gold near its 200-day moving average of $970 without violating the trendline.

Making a gold correction even more likely, Rosenberg's biggest gold catalyst, China, already said it won't recklessly chase prices up...

"We must keep in mind the long-term effects when considering what to use as our reserves," said Hu Xiaolian, the vice-governor of the central bank. "We must watch out for bubbles forming on certain assets and be careful in those areas."

With China's $2.3 trillion in reserves, it's difficult to buy gold without moving the market. Expect China to buy on the dips, creating a floor for the metal.

source HERE