Is Gold at the top? Perhaps. Are we poised for a correction in Gold stocks? Possibly. However, will gold prices correct anytime soon? Not very likely.

Here’s a 5 year gold chart courtesy of Kitco.com.

In a falling rate and falling U.S. dollar environment, these factors work well in gold’s favor. I was also recently reading an interesting article at Bloomberg which referenced the inflation adjusted current price for gold. For example, in 1980, Gold futures traded at $873 an ounce which would indicate an inflation adjusted price of $2188. Now, consider the fact that the market is trading with a large bias for an aggressive Fed rate cut before the next OMC meeting and the case for gold to trade between $850-$1000 an ounce for the remainder of 2008 is quite strong.

Chip Hanlon at TheStreet.com highlights 10 gold stocks for 2008.