I want to repeat for what seems like the umpteenth time – those Elliot Wavers who keep calling for gold’s demise are misguided because their view of the metal is too “Dollar-priced” centered. This is the fatal flaw in their “analysis” and their incessant bearish gold calls. They treat the metal as if it was a common commodity not understanding its role as a CURRENCY. Any analysis that does not grasp this simple fact is doomed to failure for we are not talking about soybeans here or cocoa but a metal that has had an historic role as a currency and a store of value for thousands of years. The failure to see the price of gold in various other currency terms leads to erroneous conclusions. Any market that is going on to make all new lifetime highs is not bearish. It really is that simple and arguments to the contrary are based more on hope and wishing than solid, objective analysis.
Could be time to dust the cover of this thread. Gold put in a big uptick overnight and in my view looks set for a run towards US$1200 in the next week or so. Trader Dan Norcini's brief makes some good points on gold's currency role as distinct from a commodity, the link http://jsmineset.com/
and this para in particular:-
need to be wary of the ending diagonal tho for the moment chaps..... don't want to load up too hard at this point imo
Interesting, Aus gold price increase starting to well exceed USD price. 1305AUD and 1182USD atm.
Obviously, with gold now a 'risk-off' trade again, and AUD a 'risk-on' they are negatively correlated. Hence, the breakdown.
well the USD price was catching up after the carnage in Wall Street: above 1200USD at the moment!!
Some interesting charts!
Gold up, USD up - which will blink first?
Yep, that's what I was alluding too... but it kicked in a tad faster than I was expecting.
They had been negatively correlated for over 10 days before I posted my comment on the previous page......
Just quietly has anyone checked the spreads on physical?
Hehe to say they are worried about volatility is an understatement.
Um, what would they be?? Backwardation yet??
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