With gold under pressure, SAN has "wowed" the mkt with continued WC results countering gold's fall.

The latest gold down-leg began in February has now lasted for two months. However, over the past four weeks the price of gold has declined without interruption. Five consecutive declining weeks for the metal is a pretty rare event – this has occurred only three times in the past eight years of this secular bull market (May 2004, June 2006 and August 2008).

In the first two instances, lows in the fifth week were also the lows for that year. Last year, despite a sharp September rebound following the five down-weeks ending in August, we saw the final low only in November. This anomaly is related to the total liquidation of assets by leveraged players during the late 2008 market crash.

The coming week may retest this year’s low (lower $800s), but whether this level is retested or not, a sharp rebound is likely as soon as next week (fifth) or the following (sixth) week. Of course, this assumes that nothing extraordinary occurs this time around.

This is an excerpt from a Resource Stock Guide Newsletter dated April 18, 2009.

RUF