With the panic selling that took place in gold yesterday, many investors have wondered if it's worth buying at $1300/oz or at current levels. We stick by the old adage of "don't catch a falling knife." We're of the impression that gold will continue to head lower now that the commodity bubble brought on by Federal Reserve Chairman Ben Bernanke has popped. The US dollar will appreciate and drive down commodity prices further which will increase consumption and growth, a net positive for the economy. And when the economy is doing well, people don't flock to gold out of fear. Any bounces in gold remain an opportunity to short the commodity and today's no exception.
