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If you enjoy the content at iBankCoin, please follow us on TwitterSince October, it has been nothing but up for the U.S. stock market, an uptrend that’s been especially unrelenting over the past 3 months. But while this rally has put a lot of money into people’s pockets, it has also served as a painful, relative reminder of how poorly gold has done at the same time.
But if you are thinking gold’s $250 giveback in the past 7 months is enough of a haircut to revisit the yellow metal, Rich Ilcyzsyzn, Founder of iiTrader.com would disagree.
“If we close below $1600 you can probably bank on $1525,” Ilcyzsyzn says, adding that, down there, he would “probably start to get a little bit long.”
As he sees it, the trouble really picked up with Bernanke. “The verbage that he said (a couple weeks ago) that I keyed off of is that he’s gonna keep rates low through 2013-ish,” says Ilczyszyn, adding, “we had all been playing 2014.” It was then, when gold had a chance to break $1800, that it faltered.
Ilczyszyn is also expecting volatility to stick around, arguing that $100 swings will be the norm and not the exception. “This is how the market is going to move from now on. We have such a high price, $100 is going to be the normal.”
