The gold bullion prices have taken a hit recently, and some gold bears are taking advantage of it. They are speaking against the yellow metal and claiming that their predictions are precise. Dear reader, I still stand firm on my belief that gold bullion prices will rise and that any pullback in the price of gold bullion should be taken as a buying opportunity . Looking at the chart of gold bullion prices from a technical analysis point of view, no major price support levels have been violated—meaning, the long upward trend in gold bullion prices was not broken when the prices decreased recently. The following is a chart of daily gold bullion prices going back to April of this year that shows the clear picture—that the recent sell-off in gold prices was nothing out of the ordinary. Chart courtesy of www.StockCharts.com Instead of showing bearish signals, technical analysis is suggesting that gold bullion prices are still holding their up trend, which began back in the month of May this year. Furthermore, technical analysis suggests there is significant amount of support available around the $1,680 level. How low will gold bullion prices go if the selling pressure continues? Gold bullion is currently trading at a level where there is a significant amount of support—buying pressure. If gold bullion prices break below their current trading range, the next support level seems to be around $1,660—or the 200-day moving average. Looking beyond technical analysis, there are fundamental changes occurring in the demand for gold bullion. We know central banks are scrambling to buy gold bullion, as they are adding more gold bullion to protect their reserves. Global investments in exchange-traded funds (ETFs) backed by gold went up 56% in the third quarter of 2012, compared to same quarter last year. (Source: World Gold Council, November 15, 2012.) In November, sales of U.S. gold bullion coins rose to a 14-year high. Investors bought 131,000 ounces of American Eagle gold coins produced by the U.S. Mint; this was three times the sales in November 2011 and the strongest November for sales of American Eagle gold coins since 1998. (Source: The Globe and Mail , November 30, 2012.) I believe gold bullion prices will continue to rise—technical analysis and fundamental changes back this reasoning. Special Bonus Article: Words of Wisdom on Gold from Our Gold Guru ~ by special guest columnist Robert Appel, BA, BBL, LLB As this is written, gold has taken out both the $1,710 an ounce and (psychological) $1,700 an ounce supports and the GDX has taken out the critical $46.00 support. We believe the old adage that the greatest opportunities present themselves when “the herd” is doing ... Read More