For gold buyers, $1,050 is the new $900.
As today's chart shows, gold spent a good chunk of 2009 drifting around $950 per ounce. During this drift, gold dropped into the $900 area twice... which offered the gold buyer a chance to buy a little cheaper than the "normal" price of $950.
This "$950 is normal" period didn't last long, however. Gold staged an amazing three-month move from $950 to $1,200 late last year. This left gold incredibly "overstretched" to the upside.
Now that gold has had time to collect itself and "simmer" after its huge run, we see buyers and sellers are now comfortable with about $1,100 per ounce. The yellow metal has drifted along this level for four months... and a dip down to $1,050 is now the new bargain price for gold.
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