Gold Price - Where is it heading?

[bean]

The Gold Index I have been mentioning closed up again 8 Days straight and the DOW 8 days straight (with a massive 274 point gain over the 8 days ) the best amount of up days since it closed up 8 days in a row 21st March 2003 closing price was 8522. Its closing price on the 22nd March 2003 was 8215 only a 307 point drop.
Gold may top tonight the DOW may top tonight??
Golds stocks in the US are following the DOW.

 

[Kimosabi]

The Gold Index I have been mentioning closed up again 8 Days straight and the DOW 8 days straight (with a massive 274 point gain over the 8 days ) the best amount of up days since it closed up 8 days in a row 21st March 2003 closing price was 8522. Its closing price on the 22nd March 2003 was 8215 only a 307 point drop.
Gold may top tonight the DOW may top tonight??
Golds stocks in the US are following the DOW.

With the value of the US dollar going down, this is already pushing the Gold price up.

With supply going down, inflation going up, interest rates going up, and potential loss of confidence in US dollar, Gold is going to keep going up...

 

[bean]

I am a Gold Bull. I hold physical silver.
But I do know corrections come and this correction in Gold is not finished for the third wave up to begin. I have been a Gold Bull for about 7 years. I follow US markets and have various sites that have good analysts. Ones I have been paying attenion to before the gold bull really started. Not the Johnny come lately analysis that come out of the wood work once a bull starts.
The US gold HUI index is at resistance. The DOW/US markets are on the verge (isn't that part of the big picture why we invest in Gold) If the DOW or the US market decide to correct all shares will fall initially Gold shares included. The US dollar may be dead but beware of a dead cat bounce. Also take a look at what happened to our share market last time our $ got so high (it should be correcting about 10%) You have to look at the big picture not just one or two things.

 

[wavepicker]

With the value of the US dollar going down, this is already pushing the Gold price up.

With supply going down, inflation going up, interest rates going up, and potential loss of confidence in US dollar, Gold is going to keep going up...

Would have to agree with bean. Also, if Gold does make a new high, it might be temporary and marginal, simply cannot see it continuing very bullishly to higher levels if it does ATM. In the loger term yes. US Dollar Index although still looking bearish, has really been struggling down the last year. This market is churning and reversal in the months ahead maybe in the making.

Cheers

 

[CanOz]

Would have to agree with bean. Also, if Gold does make a new high, it might be temporary and marginal, simply cannot see it continuing very bullishly to higher levels if it does ATM. In the loger term yes. US Dollar Index although still looking bearish, has really been struggling down the last year. This market is churning and reversal in the months ahead maybe in the making.

Cheers

Good to see your posts WP, i look forward to them.

Cheers,

 

[bean]

Well if I didn't post you might think I have turned bullish overnight.
Last night the Gold Index I have been mentioning was down and so was the DOW.. The DOW is now at critical point below 10450 its down to test the lows of last month above 10500 it may rally? Gold shares will follow the DOW and so will the price of Gold.

 

[bean]

Wavepicker you inbox was full. If you want to empty it I will tell when wave three is ready to start.

 

[Uncle Festivus]

An Ascending Continuation Triangle emerging - hold on if it breaks $690!

 

[Sean K]

An Ascending Continuation Triangle emerging - hold on if it breaks $690!

I agree. Psychologically, breaking this level of resistance is probably going to send it to test all time highs, pending breakout of peace in the Middle East and the US $ strengthening......

 

[clowboy]

$690 just broken, with haste.

New records, here we come, I hope.

 

[chops_a_must]

$690 just broken, with haste.

New records, here we come, I hope.

Although it is a good thing for a lot of my stocks (am deliberately leveraged to gold stocks for macro reasons), it isn't wonderful for the overall market... A rapidly increasing gold price has a habit of crashing everything else.

Which, strangely enough, will hurt gold stocks in the short term as well.

If the gold price stays up over the next few days, there will be blood on the floor.

 

[CanOz]

Could be a big move soon....

 

[harmony]

OK, so there must be something I am missing, gold going up, US gold stocks up but ours seem to be in a trading range still. Is the AUD too high now for Aussie gold stocks?

Go gold stocks.

 

[Sean K]

One for the Gold Bulls to get excited about....or bears to consider.

Sell Gold in May and walk away - Not This Time

http://www.kitco.com/ind/Lee/apr172007.html

 

[bean]

Well did not post for a few day as the DOW was going to rise and so was gold. What now asks every taks about US$ http://www.elliottwave.com/ give a coment on the dollar sentiment same as may 2006. Being a gold bull 'what happened then'
Yes gold can rise a bit more the DOW for want of being may make 13000 or is the double top in already.
All markets are becoming vunerable at the moment. Gold will some break away. To those how have gold stock which have any hedging what so ever. The first thing I learned about 7 years ago was not to buy a gold company which hedge and also if gold ever gets passed $850 they are sinking and past a $1000 they are stuffed.
This latest move is a goog example gold in US $ has move about $US 50 up gold in AUD is about $40 down. (well not a good example) if gold really take of these companies will be selling gold cheap.
The gold share I am going to buy have done diddly twat.
I am in cash with no risk. Australia Gold shares are acting like the Australian market should be with our $ stronger. Is the ASX in a bubble?

 

[bean]

This latest move is a goog example gold in US $ has move about $US 50 up gold in AUD is about $40 down. (well not a good example) if gold really take of these companies will be selling gold cheap.

Sorry everyone was reading about how Google may be droping in days, weeks, ahead. GOOG should have been gold.

 

[bean]

Didn't do a post last night as I expected the DOW to finish up and thought gold might as well. The DOW is ready to explode to the upside (a blow off top)
Gold and Gold stocks http://www.financialsense.com/market/wrapup.htmthe following link READ it has charts and elliot wave commentery.This Martin Goldberg is quite a good technician. Does posts for gold every now and again.

 

[>Apocalypto<]

Went long on gold around 11 after i saw it bounced of its trend. Trend was also reconfirmed.

Finding some selling again at 690 not sure what to make of that yet.

Still moving in a 45degree angle, better to see it above the 45degree Gann line but the price has returned to a bullish position above the 1x1 line.

I am going to hold still bullish.

 

[bean]

With the DOW approaching 13,000 a milestone (reach monday night) does it correct sometime this week or continue in its blow off fashion.
Gold approaching $700 Gold (US) shares have if you read the article on link I posted the other day have been following S&P and DOW.
So tuesday on wedesday night do we have some down days. The gold indexes in the US really don't want to drop on either of those night as they may well issue sell signals. One of the US shares he mention Gold Corp when gold dropped US $4 on thursday night there shares dropped over 3.5% friday night gold up $8 there shares up only 0.16%. Get the picture the gold shares at the moment are not following Gold or the US markets with the same vigour. Yes the gold indexes are rising but not as thought they truley believe this move. One is going to be right on the direction. That is why I will wait until the shares decide.

The trouble we have is we have a holiday on wednesday.
Now if the shares were to fly tuesday and wenesday night buying shares on thursday could have gaps up so may be paying 10% more for some shares.
However if it is the opposite and its down could have big gaps down.

 

[drillinto]

Prepare to go blind...


"Load up on gold stocks while you still can!"
Sources: AME Info & Stockhouse ; 4/15/2007

The price of the yellow metal advanced past $685 last week on US dollar weakness, yet gold stocks have lagged behind in the recovery from the sell-off that started last May. If gold has now got the wind in its sails then gold shares should be due for a sharp rally very soon and indeed leverage off gold's advance.With monetary inflation now surging worldwide, that is to say the money supply is running out-of-control, then a much higher gold price is just a question of time, and it maybe not that much time either. Last week we saw the US dollar fall to a two-year low against the euro as this debasement of the world's reserve currency gathered pace. Yet with M3 money supply statistics now abandoned by the Federal Reserve it is impossible to gauge just how serious this problem might be although the yawning twin deficits suggest it can only get worse and worse, unless corrected by a recession. Gold is the only true currency and fiat paper currencies like the US dollar devalue against this fixed store of value in times of inflation. But there is a tipping point at which the gradual shift away from the US dollar will become a rout as holders of the US currency seek an alternative.

$3,000 an ounce
Then gold will start a rapid ascent in value, back towards an inflation-adjusted, all-time high of around $3,000 an ounce. Supporters of the GATA pressure group maintain that it is only central bank collusion that keeps gold prices low, and that collusion is breaking down with even the IMF now actively canvassing rule changes to make this a more transparent market. Gold will also likely be an alternative asset class of choice if global stock markets tumble and the US real estate crash spreads. This happened in the mid-1970s and it can happen again in the 2000s, as post-crash investors look for a new asset class and do not rush back to where they have just been burned. Leveraging this forward price momentum for gold will therefore likely become a major investment theme of the next few years. And gold stocks will be a favorite method. For as the gold price rises, mining costs remain relatively static and so the profits of gold companies increase by a higher percentage than the metal itself.

Golden juniors
Also junior mining and exploration companies with claims may find that their modest assets suddenly zoom up in value as producers seek new sources of gold and bid up their value. That is why the highest leverage to a rising gold price can be obtained by buying smaller gold companies in a boom. This is where the hundred-fold increases will be found in the next gold boom, as in the late 1970s, although the metal itself and the bigger companies will provide very large rewards at a time when other asset classes may struggle to deliver returns. At the moment many investors take a small position in gold as a hedge against troubled times, and they will take an even bigger position when things do go wrong, so buy now while gold stocks are relatively cheap.