Gold Price - Where is it heading?

[electronicmaster]

lol, The media is still trying to stop people from buying gold.

You don't see them putting a bad name to any other investment that truly is in a bubble. Nope, they like to encourage people to invest in the bubble phase.

 

[Southern X]

For now I'm watching the USD. It is hugely oversold in a very crowded trade, ie short USD long commodities (or as Jim Rogers is famous as saying, "buy anything that if you drop it on your foot hurts").

I'm also anxious about the US financial system and its patent inability to evidentially show WHO owns the real estate, be it residential or commercial. In this regard IF a crash is triggered EVERYTHING will come tumbling down as the USD counter-intuitively rockets UP. If that scenario occurs I will sell half and reload at lower prices because I believe, to understate the case, Au will catch a bid.

Still long and strong in the Yukon. Go Atac, TSX-V:ATC!

SX

 

[Whiskers]

For now I'm watching the USD. It is hugely oversold in a very crowded trade, ie short USD long commodities (or as Jim Rogers is famous as saying, "buy anything that if you drop it on your foot hurts").

I'm also anxious about the US financial system and its patent inability to evidentially show WHO owns the real estate, be it residential or commercial. In this regard IF a crash is triggered EVERYTHING will come tumbling down as the USD counter-intuitively rockets UP. If that scenario occurs I will sell half and reload at lower prices because I believe, to understate the case, Au will catch a bid.

Still long and strong in the Yukon. Go Atac, TSX-V:ATC!

SX

Me too. There seems to be more pressure on US banks to step-up reposessions again after a bit of a reprieve, to balster their cash requirements. I can only presume if those reposessions get slowed down further by legal actions or regulation, then their only recourse for cash in the short term is to liquidate other 'ínvestments' such as gold, equities and those investment abroard chasing better interest and foreign exchange returns.

I suspect the tension has built up a bit too much and is about to unleash pretty quickly.

Potential H&S would send it back to 1,270ish pretty quickly.

 

[Edwood]

Potential H&S would send it back to 1,270ish pretty quickly.

yep agree with you Whiskers, looks to be confirmed and has tested the underside of the neckline this morning

 

[Southern X]

It looks like Au is right at the low end of the up trend which began at July's end. NOT GOOD.

The USD rallying? Looks more like a blip now, but it's technically overdue for a rally/bounce. NOT GOOD.

A bad week, barely holding near term support. NOT GOOD.

I'll chime in with whiskers and edwood at a possible $1270 if $1300 is decisively broken. IF $1270ish snaps I'm thinking $1240. However, I may take a partial position (always equities) at $1270 and, if-if-if Au reaches $1240 fill up. Mind you with a tightish stop loss.

Long term nothing has changed: UP UP UP!

Forewarned is forearmed. Keep some powder dry.

SX

 

[Mr Z]

It is on trend now. The next few sessions will tell us if it is likely to hold. Other indications at the moment suggest that it has a good chance of holding here. We will see. Otherwise we may correct for a short while, not out of place at this time of year. Then we will set up for a good run into the year end. That is if we do indeed correct... for gold, so far, this is noise.

 

[explod]

Notice a few taking positions. It is not a betting game in my view.

Gold has run a very long way in a short time and is overdue for a spell and perhaps a bit of a correction. It found firm support last night so my view is that it will consolidate around the US$1320 level for a week or two and then be away again.

Gold is not going up, currencies are going down so the paper value is changing. The huge currency problems are not being resolved and the noise suggests the noise will become much louder in the next week or two. There will be some continued fear on currencies that will translate into the purchase of US dollars as its safe haven status seems to dictate these days. However the rund for real value will change that game soon IMO.

In the history of gold the bull run chart has been described as the climbing of a wall of worry. The newcomers believe in the beginning then wonder if it is too good to be true. It is no big deal but I encourage you all , if you have not done so, to read the history of gold, understand and do the sums and enjoy knowing that your wealth is being preseved when in all other financial areas there is nothing but doubt and turmoil.

 

[Mr Z]

Now if the government then outlaws the holding or trading of gold bullion then we get back to year 1 - a whole new ball game?

Apparently the laws are on the books to allow for confiscation of Australians gold. The only thing that is required are triggering conditions, basically for the government to decide it is required. It is a simple as that... silver however is a different kettle of fish. There is an article authored by a Perth Mint employee on it floating around the web.

I doubt it will ever be used BUT it is interesting that they bothered to make provision for it.

 

[explod]

The following is a very good explanation of the overall situation for gold going forward:

http://www.financeandeconomics.org/Articles archive/2010.10.22 Gold unallocated.htm

 

[explod]

Gold unusually strong out of the blocks for a Monday and confirms a solid gathering of buyers on the dip last week. Thought we may have a week or two's consolidation at that level but perhaps we are going past tipping point now.

G20 on currencies at the weekend done and dusted, just more blah blah blah and did I hears someone say last week ditty ditty, agree with that too.

And gold, as we have harped on for years now, is all about currencies folks, particularly the weakening US$. Aussie$ back at .9925 today in a heartbeat from last weeks drop. So much for the unanimous G20 pledge to rein it all in.

Got gold or silver?, need to get some physical fast now IMHO.

Robots, have my capitalist hat on today, go down to Wright's and buy some of those 1966 silver 50 cents coins, just a short tram ride for you and you will thank me forever. Of course I am not qualified to give advice and know you would not take it from a slight/leftie anyway.

 

[Southern X]

Notice a few taking positions. It is not a betting game in my view.

Gold has run a very long way in a short time and is overdue for a spell and perhaps a bit of a correction. It found firm support last night so my view is that it will consolidate around the US$1320 level for a week or two and then be away again.

Gold is not going up, currencies are going down so the paper value is changing. The huge currency problems are not being resolved and the noise suggests the noise will become much louder in the next week or two. There will be some continued fear on currencies that will translate into the purchase of US dollars as its safe haven status seems to dictate these days. However the rund for real value will change that game soon IMO.

In the history of gold the bull run chart has been described as the climbing of a wall of worry. The newcomers believe in the beginning then wonder if it is too good to be true. It is no big deal but I encourage you all , if you have not done so, to read the history of gold, understand and do the sums and enjoy knowing that your wealth is being preseved when in all other financial areas there is nothing but doubt and turmoil.

Very well said, explod. I agree with all points except your second sentence where you don't see Au as a betting game. That, though, is just a matter of mind set or trading style.

With a SOLID long term trend UP I'm now concentrating on dips/corrections to determine entry points (only equities, eg. SSP:TSX). Support now at $1275-$1280.

I'm firmly in the camp of, "It's NEVER different this time." That said I believe we'll see an enormous flow of capital into the USD if there's a stock market crash. Therefore USD up, Au down. This won't last nearly as long as 2008, but it will provide a (last?) golden opportunity to buy before a spike to $????.

Concentrating on dips; keeping powder dry; looking for wealth creation!

SX

 

[explod]

Robots, have my capitalist hat on today, go down to Wright's and buy some of those 1966 silver 50 cents coins, just a short tram ride for you and you will thank me forever. Of course I am not qualified to give advice and know you would not take it from a slight/leftie anyway.

If you were able to get down the street today Robots you are up almost 1% on those coins already.

Nice clear sunny day here working on the vegie patch. Aussie$ at .9961. Could we hit parity tonight. Probably get a whack at 0800 NY time, lets see.

 

[Southern X]

Talk about USD strength!

http://www.infiniteunknown.net/2010/10/25/us-treasury-draws-negative-yield-for-the-first-time/

Guaranteed to give one LESS money than one puts in!

Holy guacamole. Is something beginning here; something that has the same stench as 2008? A take down of Au to $1250-$1275 with an accompanying rally of the USD? Even against the background of CFTC regulatory changes dictated by the Dodd-Frank law.

Keeping powder dry for this possible scenario.

SX

 

[explod]

Talk about USD strength!

http://www.infiniteunknown.net/2010/10/25/us-treasury-draws-negative-yield-for-the-first-time/

Guaranteed to give one LESS money than one puts in!

Holy guacamole. Is something beginning here; something that has the same stench as 2008? A take down of Au to $1250-$1275 with an accompanying rally of the USD? Even against the background of CFTC regulatory changes dictated by the Dodd-Frank law.

Keeping powder dry for this possible scenario.

SX

We have an increasing amount of volatility in both curencies, p/m's and markets which most often ushers in big change.

Had a mate of mine who lives in South Korea send me an email over night as follows:

I think inflation is something that will start kicking the gold price up.
Notice how the deflationists have gone all quiet for the last three months.

Yet Producer Prices in Australia, the UK, the US, Europe, Korea & China have all risen
on news in the last week. Any gold bug worth their salt doesnt need to wonder why. If the northern hemisphere
winter is a bad one, oil will go $100+ a barrel and gold will follow the barometer as always! And so will the cost of everything
that needs to be transported to market for that matter and the price of anything used to heat homes (ie. coal).
The Inflation genie will become Godzilla even faster than we think.
Any dips below $US1240 an ounce and I will be buying more physical for sure.

Here's my quote of the week:

Fed Treasury purchases will spur global inflation while failing to bring down U.S. unemployment, El-Erian said yesterday.
Pimco, based in Newport Beach, California, manages the world’s biggest bond fund.

http://www.bloomberg.com/news/2010-...ive-month-high-on-outlook-for-fed-easing.html

Now all that needs to happen is a new round of bond purchases by the US FED and more Quantitative easing (Newspeak
for cashing up the already over-leveraged on Wall Street still living in "no network headlines" denial).

Just wait for the Jim Sinclair call of $1650 by Jan 2011 and ALF numbers after that. He won't be far off for the way it looks at the moment.

Stay the course friend. Those closest to you will depend on it.

Hold your gold.

Keep well and stay alert

And of course the news blogs in the last few days confirms all of that. Particularly the move by silver which many times we have noted fortells in the short term the next move in gold. On a normal ratio against gold of course silver ought to be around US$40. That level if reached will further add to growing sentiment on pm's overall. As the printing presses continue to destroy the financial world we have known, it would seem that bullion, land or something of value in the hand would be the wise way to go at the moment.

But that is just my opinion.

 

[wayneL]

Apparently the laws are on the books to allow for confiscation of Australians gold.

I floated this idea a couple years ago on here.

At thsi point I wouldn't discount anything.

 

[Sean K]

I floated this idea a couple years ago on here.

At thsi point I wouldn't discount anything.

If they keep on keeping printing money no storage of national wealth will be excluded.

STOP PRINTING MONEY AND ALLOW IDIOTS TO FAIL AND DIE!!!!!

 

[wayneL]

STOP PRINTING MONEY AND ALLOW IDIOTS TO FAIL AND DIE!!!!!

Yes please!!!

 

[explod]

I floated this idea a couple years ago on here.

At thsi point I wouldn't discount anything.

Agree, love silver.

 

[nukz]

Apparently the laws are on the books to allow for confiscation of Australians gold.

This is true, but to the best of my knowledge when this was done in the U.S only a small amount of approximately 25% actually was confiscated and that belonged to banks/institutions ect.

If that ever ever happened here would you let the government take this from you? i think not lol who cares if your breaking the law

 

[Southern X]

For those still conscious and relatively sober late after the horse race keep an eye on what the FED does with respect to QE II.

It seems to me that much of the past month's move in commodities has first been predicated on the notion of the Fed printing a shock and awe amount of lovely smelling new money. Then, pundits have been strongly suggesting it won't be so shock and awe-ish after all. Even with a recent WSJ story downgrading the height of said new money being "suggested" as being a deliberate Fed leak... sheesh!

What's that?! Pub time!

Gotta go.

SX