HUI Chart & Commentary

Comments: A disappointing finish to the week in Gold. I think there is still a decent chance for the rally to continue however. Last Friday, the HUI tested the broken downtrendline from May. If the HUI can maintain itself above that downtrendline, there is a possibility of a rebound and a continuation of the rally. I'll be very interested to see what happenws when the USD Index approaches 83.50 to 83.60. Those were major points of support which were broken during the recent plunge and should now constitute formidable resistance. The result of the retest of this resistance should determine the direction of Gold in the short term.

Last Week Portfolio Gain/Loss: -0.56%. Considering the mediocre action in Gold recently, I actually did ok last week. I was up decently for the week until the horrible reversal on Friday. USGL, which announced that its shares will be traded on the American Stock Exchange starting from next week (as UXG), did well for me, and PAL, NSU and EP also did ok. The losers were RGLD, SLW and MDG, into which I bought in too early. The continuing weakness in SLW is causing me some consternation. CUP continued to go nowhere, but I sense that could change at any time.