Gold Futures (U.S. $550.20)

Gold has seen a twenty-five dollar correction since I called for a resource selloff on February 1st 2006. As I write today, underlying intermediate and long term price momentum remain healthy, but wildly overbought, and my unique short term momentum charts are busy hemorrhaging on the downside.

In my January 10th 2006 comment on gold, I said I was looking for a first downside correction target in the area of $500. This still seems reasonable to me today.