explod
explod
- Joined
- 4 March 2007
- Posts
- 7,341
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I just went in to squizzy about thought won't hurt to take a dip opp . except I get on site and WTF it's $882 knocking on $883 again , blimey didn't take long to shaft that idea , I expected to see 870's . Quicker than a claytons recession . Fritz , fritz and fritz .
Gold futures rallied to a new all-time high Thursday, after the dollar fell sharply as investors interpreted Federal Reserve Chairman Ben Bernanke's prepared remarks as a sign that the central bank will further cut interest rates.
Gold for February delivery soared as high as $897.30 an ounce on the New York Mercantile Exchange, a new record high that surpassed the previous record of $894.40 set on Wednesday.
More importantly it traded through a $30 range, suggesting further volatility and that a $1000 figure could be reached quickly - within the month.omg .. 895 ... 900 in sight? this is nuts:
Indeed!Actually I think Uncle Festivus might have to take the honours there Chops for placing a short within $1 of the top.. stopped out but still, it was quite a call..
It appears that gold is still aligned closest to the good ol' $US, so as long as even the slightest hint that US interest rates are going to be lowered then should be continually supportive of gold, despite the technicals calling for a retracement, but still within the now normal daily trading range of $30 or so.
In fact, it might pay to be counter contrarian - if the expectation is for a big sell-off then start buying? The poor old gold bugs are used to getting hammered after a strong rise, so were quick to offload their trade positions (as opposed to investment positions) exacerbating the correction. Only this time it is met with even more support, so the trading mantra may be changing. ( having said that, be prepared for the mother of all sell offs???).
I think US rates are heading to both actual zero & effective negative, a mirror of that other well known basket case called Japan. Monetary debasement on a logarithmic scale now so may expect the continued opposite reaction from tangable, scarce, stores of value?
For 7 years or so I've watched the small Kitco chart as a quick sign of interest and volatility ie the scale of the Y axis, which is out to $50 these days, I remeber the old days when it would scarcely move $2. Gold down $30 - so what? We are becoming accustomed to sell offs in this range now, similar to the XJO in the later stages of the bull market. The difference here is that the gold bull may only be entering another, more 'manic', exponential phase? I liken $900 similar to the old $700 barrier, thar she blows, off and running.
http://finance.yahoo.com/charts#cha...ne;crosshair=on;logscale=off;source=undefined
Just my humble 2 cents. Oil has just dropped from record $100 (Jan 2) to 92.7 (Jan 11). I have observed the chart of USO (Crude Oil ETF proxy) vs GLD (Gold ETF), even if they don't move up and down at the same time and value, but they strongly co-relate each other, in fact it's usually oil leads gold. Just observe the chart above, it's uncanny in their co-relation. In almost every respect, gold is now in a very similar situation as oil. You can expect that a breakout in one market also leads a break out in another. Oil has broken all time high $100, Gold quickly followed day after. So I think we are going to have a bit of healthy correction for the next 2 weeks, before the next charge to 975. Next time Oil will lead again. Watch for that space.
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