+1No, what he meant is that the prices of gold and silver are being MANIPULATED by very few "commercial" traders. These very few traders are solely responsible for keeping the precious metal prices down right now because if they weren't shorting, everyone else including the miners will be long, and I meant VERY net long. That would probably force the metal prices to shoot up to the moon.
"THE stock market closed in the red for the tenth session in a row, the first time for more than 15 years..."I have noticed in the last 12 months that when stocks fall, particularly on Wall street, gold goes down with it for a few days.
Initially everyone wants out, then comes thinking time. They ask "what is the alternatives? ah.. grasshopper, gold is a safe haven and it is looking oversold"
+1
I think this may explain a bit of what's going on here. It doesn’t make sense to me that gold be slightly falling when the market is burning.
Technical chartist (Kauri, Barrett et al) where is the next support level ? It got through 869.8 briefly are we going to see 860 then 850 ?? Let us know, cause I am itching to get the bargain of the year
I think people call it a "technical liquidation", that is when someone liquidate everything in their portfolio to meet margin calls, or have a need to raise cash urgently. And their portfolio probably include gold as well.
But could be something else. There are always the "boys" who are acting behind the scene to keep the prices down whenever they feel it is necessary.
I'm even thinking that anything at or less that .50 point reduction will spell a significant sell off. .75 points and gold should go well through $900 again, and 1 point gold will shoot to $1000. (is that a ramp?1040 [Dow Jones] Spot gold higher, shrugs off impact from slightly stronger USD but profit taking clips gains, says HSBC's James Steel. Notes market focused on interest rate cuts by Fed, has at least 50 bps priced in, and pullback on official announcement could lead to profit taking. Gold, other precious metals may derive more support from an increase in investor risk aversion related to bond insurers; should bond insurers run into difficulty raising capital to fund obligations, including CDOs, problems in credit market may resurface, helping gold. Spot gold trades at $884.20/oz, up $3.70 vs last NY close.(EFB)
1044 [Dow Jones] Spot gold steady, volatility could rise near term because of uncertainties in other financial markets, says Investec. But gold should benefit from flight-to-quality demand as stock market lags. Drop from last week's record high partly driven by selling from investors, funds to cover margin calls from losses in stock markets, amid fears of U.S. recession. U.S. markets shut Monday for Martin Luther King Jnr holiday. Spot gold up $1.05 at $881.55/oz. (EFB)
From todays news wire:
I'm even thinking that anything at or less that .50 point reduction will spell a significant sell off. .75 points and gold should go well through $900 again, and 1 point gold will shoot to $1000. (is that a ramp?)
(I'm still holding my key gold stocks through this turbulance [LGL and NCM] and have been tempted to add to positions with the US surely set to lower rates, as Helicopter Ben has intimated. Also holding for M&A potential.)
I agree, that if there's a turn around and risk is back in style then the junior sector could outperform. Just depends on the risk appetite....Now, where's that turnaround??So I reckon this is a fine time to top up on gold stocks, or start buying, especially the juniors (too many to mention but CRK, WEZ, DIO, CRE, OGD, etc, etc..) not recommending any of those per se, just examples of Aussie golds that have been hammered for no good reason while the gold price is going up. Funnily enough if the stockmarket recovers that could be enough to pull these up even if the gold price corrects further.
The XAU:gold ratio went below 0.2 again Friday night. This is the most consistently reliable indicator in the gold sector that gold stocks are good value at the moment. I like to see it go below 0.19.. but I'm usually too fussy for my own good. So I reckon this is a fine time to top up on gold stocks, or start buying, especially the juniors (too many to mention but CRK, WEZ, DIO, CRE, OGD, etc, etc..) not recommending any of those per se, just examples of Aussie golds that have been hammered for no good reason while the gold price is going up. Funnily enough if the stockmarket recovers that could be enough to pull these up even if the gold price corrects further. On the rate cuts.. something has to be done about the US markets and the Bush 'package' did nothing.. that leaves it up to the Fed, who are undecided but given the parlous state of the markets my guess is a 0.5 cut. If the market had a sharp intraday fall there could be an early announcement. Even if not, some dovish language could tip the balance for gold.. remembering this is seasonal strength for gold so Asians (Chinese new year, Indian festival) will be buyers on dips.. I am still following Kauri's current wave count suggesting wave 5 is yet to come.. a possible run into the mid 900s perhaps, if not immediately.
It just broke that sym. triangle (877 now), so the next support is 860, correct ?another little coily thing developed on the hourly chart...
Cheers
.......Kauri
I'm in two minds about the price. On one hand the price of oil looks like it's on the up but on the other maybe the central banks are keeping gold in the 870 - 890 range while the crisis is on.
I also have the concern that as soon as the market starts to recover the flight-to-quality factor that gold has becomes less important and the price will fall. Anyone have any comments on that?
I hope you a right.Dont' worry about gold, it will be soon seen as the only store of wealth at all because money has lost its value as it is backed by debt.
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