Gold Price - Where is it heading?

[explod]

Just on that one. Anyone see the 7:30 report last night?? Spewing out the positive gold line.


NOT A GOOD SIGN

GumbyLearner Re: Gold Price - Where is it heading?

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Did anyone catch the story on the 7.30 report last night?

Gold Rush in times of economic turmoil

http://www.abc.net.au/7.30/

Bloody gold bug propagandists. Whats the world going too? I can only think of one word

Seems we mostly did. Ho Hum, must be sumthin to this gold thingo

 

[GumbyLearner]

Seems we mostly did. Ho Hum, must be sumthin to this gold thingo

Oh **** I missed TH's post. Domestic blindness can strike at anytime!

 

[MRC & Co]

In the 1930's most companies and many financial institutional bonds became worthless as business folded. I would no sooner put money in bonds as give it to the man in the moon. Should do some reading up on bonds.

Not company bonds, Government bonds.

And not buy, short. And long-term.

Hedge against low or negative real interest rates basically and those trying to buy long-term bonds to actually recieve a decent yield (being payed on longer-term bonds).

 

[GumbyLearner]

Gold broken key resistance of US 965.

This appears very significant in the short term

 

[cuttlefish]

Yeah its looking really interesting. The consolidation back down to the high 800's has built healthy support and the recent strength is making me feel optimistic.

.... and as I am the official gold reverse-indicator any optimism I show is a sure sign that its about to top out and reverse ... I even opened a bunch of new long options positions for the first time in months over the past few days so surely thats a fatal blow for the current rally. (Also closed a few itm may calls as well that I opened a while back).

 

[MRC & Co]

Yeah its looking really interesting. The consolidation back down to the high 800's has built healthy support and the recent strength is making me feel optimistic.

And that too, is why I am optimistic as discussed earlier in the thread with SGB.

We are rallying out of a good base and fundamentals continue to look even more bullish for gold (with the US talk of printing their way out of deflation and debt). Quite different circumstances than the previous high gold made, but MUCH MUCH more sustainable.

 

[explod]

Not company bonds, Government bonds.

And not buy, short. And long-term.

Hedge against low or negative real interest rates basically and those trying to buy long-term bonds to actually recieve a decent yield (being payed on longer-term bonds).

What do think has happenned to General Motors Bonds and the Government bonds of Germany back in the 1920. Are we not seeing these scenarios coming.

Golds the go and the last few weeks loaded right back into gold stocks as well.

 

[SGB]

Get on Board :bowser:

 

[MRC & Co]

What do think has happenned to General Motors Bonds and the Government bonds of Germany back in the 1920. Are we not seeing these scenarios coming.

Golds the go and the last few weeks loaded right back into gold stocks as well.

General Motors are not Government bonds and if US Government bonds collapsed, would you not wreck a huge benefit being short?

 

[GumbyLearner]

General Motors are not Government bonds and if US Government bonds collapsed, would you not wreck a huge benefit being short?

Funny that, now a lot of people in the US are referring to GM as 'Government Motors'. Which of course it could have been named decades ago. JMO!

I think we are looking at a big night tonight. I think the usual NY open smackdown will not occur this evening.

What's the likelihood that the IMF will offload a big chuck of bullion in the next few weeks/months?

 

[explod]

Funny that, now a lot of people in the US are referring to GM as 'Government Motors'. Which of course it could have been named decades ago. JMO!

I think we are looking at a big night tonight. I think the usual NY open smackdown will not occur this evening.

What's the likelihood that the IMF will offload a big chuck of bullion in the next few weeks/months?

China has openly offerred to buy the IMF 400 tones they keep harping about and the rest of it they have too. Think its about 2000tonnes. China is trying to lay thier hands on off market as much as they can without blowing the price too high.

IMF have been trotting this out now for about three years but can never get the votes together to do it.

Yes gold looks set and many of the big jumps in the last six years have been on the weekly trade close.

We shall see. US dollar certainly tanking tonight so trap looks set.

 

[explod]

Pundits I follow say that the US$980 may be significant resistance. It failed in this area in July last year and though we hit the 1000 mark in March a great deal of activity then occurred at this level. A close above 980 tonight would be a very bullish signal for next week, particularly with the steady consolidating rise of the last month or two.

Psychologically people are concerned for the current market and financial situation so a high cose will bring in new players. Compared to the breadth of market activity across the globe, the gold sector is a very small one so it is felt that when it goes this time the four figures will be here to stay.

We shall see.

 

[solomon]

Hey Explod I've come a long way since you told me gold was a currency about 12 months ago, I think you said until you understand that don't invest in it! Thanks I took your advice.

From my reading there does seem to be considerably higher volumes on the livecharts gold chart tonight in a period of the trading day that is normally quiet before the wall st open. So I think we could touch 980 easily tonight or else we will see a smackdown from the forces of darkness and gold will drop back to the 920 area.

Any thoughts?

 

[explod]

From my reading there does seem to be considerably higher volumes on the livecharts gold chart tonight in a period of the trading day that is normally quiet before the wall st open. So I think we could touch 980 easily tonight or else we will see a smackdown from the forces of darkness and gold will drop back to the 920 area.

Any thoughts?

I agree it looks strong tonight. Unusual for the rise during our period of trade today also. The US dollar has dropped another 1 half percent since my last post here and on the three month chart is really starting to tank.

But who knows, we can only follow behind the market.

920 are, unlikely in my view, the 960 are took a lot of cracking recently, it was an important level going back also. So I think that level would certainly hold as things stand.

I must spend some time to learn to put up some decent charts, but what I have is adequate for my own purpose so not much motivated.

Learning to read and understand charts was the most valuable part of this business for me. Anyone not up to that is really handicapped. Had a brief look at "charting for dummies" recently and wished that had been around when I began. Having said that it should only be a start to further reading on the subject but it will give you the idea of chart power.

 

[sam76]

$979 and looking strong

 

[explod]

Into the close now as ecpected gold has stalled at breaching the 980 line but on the action next week things are going to be very interesting indeed.

Over the last year or so a lot of posters have expressed frustration that as our dollar rises it takes the shine off the Aussie gold price. Well the Aussie dollar has continued to gain in the last 24 hours and with that our own gold price has gone up AUS$24 Silver which is my main long term play even more so.

Most know and I will re-state, when the train leaves the station on gold, those holding are going to be pleased indeed. In my huble opinion of course.

A number of posters send me PM's for my take. This is a difficult situation because I am not qualified to do so. However on the open forum I am quite happy to put in my two cents but we must always remember the regulators are watching.

Cheers explod


PS. 3 minutes prior to the close the Dow was up 3 points, at the close it was 96.53 Obvious that the Fed is not only printing money out of control and buying their own bonds but are propping up the Dow also. I have noticed this on many occasions but this mornings change was extreme. Of course Bananke may have announced the holy grail to the sheeple again so will scan the news later to see what it is.

All good for gold

 

[SGB]

.

Learning to read and understand charts was the most valuable part of this business for me. Anyone not up to that is really handicapped. Had a brief look at "charting for dummies" recently and wished that had been around when I began. Having said that it should only be a start to further reading on the subject but it will give you the idea of chart power.

explod,

Technical Analysis of the Financial Markets by John J Murphy is probably the best going around in my opinion.

Plan, simply, language is easy to read for beginners and plenty of pictures to grasp the concept of chart construction, trend reversal patterns, M/As ext.. Also covers a general understanding of other theories and time cycles.. Dow and E/W.

Well worth the investment.

SGB

 

[explod]

Thanks for your reference SGB.

Hui index has risen by more that 100% since November. Our gold stocks are lagging that a bit but expect some change from next week IMHO.

 

[prana]

The problem I have is, with the CRB so low and base metals now looking like a possible turnaround, gold may even see gains in the USD but might not translate to us. It will be a rat race between the rising AUD to see any gains for us - I would say a buying opportunity may even present itself if people start buying AUD and the USD continues to drop on a base metals recovery story - who knows? I don't. I guess I'll wait and see, buy on weakness. Chances are, gold may even actually soften below in USD terms and then come back up again, a correction against the deflationist and inflationist, a double whammy for those already invested. I'm definitely bullish in a >3 month window though so I'll look to get back in thereafter - right now, I'd rather be invested in base metals. Any thoughts to share?

It's been 3 months since my last post. The USD index is looking a breaching a floor, I reckon it's only a matter of time. Silver has done fantastically, so I'll begin loading up on gold. Can't see AUD keeping this strength although it may relative to USD but not against gold - this is now a money markets nightmare, perfect. So Sinner, I'm back into gold !

 

[explod]

The close of 979.60 was the highest monthly close ever.

It is worth looking at the monthly chart for US:GOLD on bigcharts. The white candle goes from 48 to 69 IN A MONTH.

The starter has sounded the gun and our patience will be rewarded now.

In My Very Humble Opinion as usual. "OH how hard it is..."

Of course a few reds helps too.

cheers explod.