Gold has recently gone through a period of consolidation. In a post on September 13 I stated the following when gold was around the $1100+ area.
“I believe gold will reach $1300 by spring and sustain the $1200 level minimally through 2011.”
The Indian gold buying season (wedding and festival) is in full swing as Dhanteras the first of the 5 day Diwali Festival is beginning November 3rd. India imported 34.8 tons in September up 30% from 26.8 tons the previous month.
I was obviously too conservative as gold should hit $1400 by spring. I would also like to add that by the end of the Obama administration in the U.S. that gold should easily be in the $1500 range if not higher as the non reported printed presses at the U.S. treasury continue to run at full speed.