Sell Gold?

I thought I would pen my thoughts about Gold. Early 2008 highs around the $1000 mark with a post crunch low of near $700 in November 08. Currently it is trading around the $840 level.

Bottom line - Gold is 15% off its highs / 20% off post crunch low.

Compare this to generally highly correlated currency pairs:
EUR/USD currently 1.32, 17.5% off its highs / 7.5% off post crunch low.
AUD/USD currently 0.67, 31% off its highs / 12% off post crunch low.

What is supporting Gold?

Well as I have written earlier, Gold is generally a safe-haven investment which performs well in times of uncertainty. With fears about deflation floating about and concerns over the size of the projected US budget deficit, Gold has managed to hold its value quite well.

BUT - I see this as a good time to sell Gold. Risk 900 for initial target of 700, final target of 500.

I am bullish USD, I see AUD and EUR falling and also Gold falling. But of these I believe Gold is offering a better entry level with much more potential downside.

Lets see how this plays out.