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Bull?
Posted: Sun, 11 Dec 2005
[miningmx.com] -- THE gold market had entered a new bull period that must take share prices to levels not seen since April 2002, said technical analyst, Clive Roffey.
Writing an opinion piece for South Africa's Sunday Times, Roffey said that in terms of Elliot Wave Theory, gold shares were heading higher.
"The bottom line in technical terms is that the gold share market has entered a new bull period that must take share prices well above the peaks of April 2002. Expect to see an acceleration going into the New Year," Roffey said.
"If one gold stock confirms the break above the top of its April 2002 peak then the rest, irrespective of currency, will follow."
AngloGold Ashanti, South Africa's largest gold producer, was "in spitting distance" of its April 2002 high on the JSE Securities Exchange. However, Gold Fields, Harmony and DRDGOLD remained "well under their
respective peaks", Roffey said.
The attitude of official sector gold holders was also positive for the gold price.
"In addition, while European central bankers continue to debate selling gold reserves and the UK has halved its gold holdings, Russia has indicated it will double its gold holdings.
"China, from zero a few years ago, has amassed more than 600 tons of gold as a reserve currency, more than double the UK's," Roffey said.
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