According to technical gold charts and expert James Carrillo, gold is currently overbought in the short term but will face a hyperbolic move upward soon and gold should be bought by all, especially those who have yet to own any.
May 1, 2011 James M. Carrillo GOLD IRAs
The closing price of gold on Friday April 29, 2011 has violated the LONG TERM 45 degree angle of ascent. This typically signals an imminent hyperbolic move to the upside, target is unknown. Gold is short term overbought currently but should be bought by those who don't own any and all dips to the downside should be aggressively be bought by all.
The fundamentals of the U.S. Dollar, lack of fiscal constraint by U.S. policymakers and Federal Reserve also support this move.
By May 16, 2011, we must either lift the debt ceiling in the United States, which should cause our credit worthiness to be further downgraded from AAA negative, or not pass it, most likely putting the U.S. while putting into question the "Full Faith and Credit" of the United States by its creditors, or default, which is unlikely.
I will be writing more on this catch 22 situation soon, as well as the Fed's calmly stated monetary stance, which is clearly a financial panic situation. No matter the outcome all are bullish for gold in my opinion, very negative to U.S. Dollar holders and confirmed by the very clearly shown aggressive technical breakout in gold prices.
James M. Carrillo www.goldiras.com
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