Just ran my numbers. As a good contrarian, I was suspecting that it might be buy time anyhow, with France announcing that it’s going to sell 500 tons by 2009 out of the blue while the Financial Time was loudly beating the same “gold is dead” drum that it was beating back when gold was at $275. Those inflation reports must have the big gold shorts sweating. Anyhow, the drop to $398 today brought us to a third day sitting at 1.02 R/DMA, which is my buy point. Silver probably would have been the better buy yesterday, as it actually dropped below 7 and a 1.2 RMDA for a few hours.
If Prechter happens to be wrong here, again, I think it will be safe to ignore him on metals. I’ve been loathe to do so entirely, but this is one area where his leaving inflation out of the equation just doesn’t compute.