Gold Price - Where is it heading?

[Dona Ferentes]

On Wall St at Friday, 4pm: Dow -2.8%, S&P 500 -3.9%, Nasdaq -4.7%
Spot gold -2.3% to $US1828.45 an ounce

not much safety here though AUD -1.9% to 69.24 US cents, as well.

 

[wayneL]

What is the use of GOLD?

ie: What is it good for?

Ie; Why would anybody want it?

There are so many other things I Want in Life Much More Than Gold!

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One may as well ask what is the use of a piece of plastic with pretty colours printed on it (that that has no *intrinsic value and you don't really truly own, by the way).

Apart from industrial and decorative uses, it is exchangeable for other crap we might need, food, drugs, hookers etc.

As a commodity Gold does have intrinsic and a minimum value, ie the cost of extraction and refinement etcetera.

Any purchase at or near this value is a sure cop in terms of profit potential and as an inflation hedge.

There is most often also speculative component over and above it's intrinsic value, which can be traded for fun and profit (or loss, as the case may be).

When you have cash in a bank you are, in law, an unsecured creditor to that institution... Which incidentally gets to set and vary the terms of your loan to them without reference to you.

Just some of the reasons the Spanish galleons risked life and limb upon the high seas and in foreign lands to pilfer the stuff.

 

[Garpal Gumnut]

On Wall St at Friday, 4pm: Dow -2.8%, S&P 500 -3.9%, Nasdaq -4.7%
Spot gold -2.3% to $US1828.45 an ounce

not much safety here though AUD -1.9% to 69.24 US cents, as well.

Indeed.

The curlews woke me through the night and I saw Gold had fallen, as well as the US indices.

In AUD Gold has gained roughly about $60 an oz. over the long weekend.

gg

 

[Garpal Gumnut]

Mick Jagger has Covid and had to cancel his European Tour.

There may be a butterfly effect on POG.

gg

 

[bluekelah]

AUD Gold still at a relatively healthy $2,637

AUD Gold 2620+ now But yes compared to almost everything else it will outperform even if it goes down a bit.

Its all going down, especially cryptos getting totally wiped as per usual in risk-off periods. Wait for the margin calls to start and Gold to sell down a bit more to pay for those, then when recession/stagflation kicks in proper, theres gonna be a made rush for Gold. As GG said, likely AUD4500 gold next year.

 

[Telamelo]

US Gold price down -$22 at $1,810 .. whereas AUD Gold slightly in the green at $2,633

 

[Stockbailx]

What are the odds? AUD Gold goes up, US Gold goes down. But when you look the other spectrum with the dollar, that makes sense is that the USD rises then the AUD goes down. What gives? I understand Interest rates play a part but why is Aussie Gold so strong?

 

[Austwide]

Gold is the same price when multiplied by the exchange rate.

 

[Garpal Gumnut]

As most have noted Gold has taken a hit in USD and is in profit for many in AUD who bought at a higher USD Gold price.

It is one of the anomalies of trading, the knee bone is attached to the thigh bone.

Or Go or Chess. Each move is a prelude to and determines another event.

It can be tiring or exciting.

I'll not be buying Gold today at this AUD/USD exchange rate. I'll either be holding or selling.

We are heading in to Hong Kong trading shortly so hopefully the British ( those that have not fled to Singapore ) and Chinese Gold traders will push it up on Chinese lockdowns and upcoming wedding and celebration days.

gg

 

[Stockbailx]

As most have noted Gold has taken a hit in USD and is in profit for many in AUD who bought at a higher USD Gold price.

It is one of the anomalies of trading, the knee bone is attached to the thigh bone.

Or Go or Chess. Each move is a prelude to and determines another event.

It can be tiring or exciting.

I'll not be buying Gold today at this AUD/USD exchange rate. I'll either be holding or selling.

We are heading in to Hong Kong trading shortly so hopefully the British ( those that have not fled to Singapore ) and Chinese Gold traders will push it up on Chinese lockdowns and upcoming wedding and celebration days.

gg

Top summary gg! So let me get this straight, if the AUD exchange rate is down the POG goes up. Or if the AUD rate rises the POG goes down!

 

[bluekelah]

Top summary gg! So let me get this straight, if the AUD exchange rate is down the POG goes up. Or if the AUD rate rises the POG goes down!

Yes just treat gold/silver as a currency and store of value in itself, thats what i do. And i treat fiat as just a medium to buy stuff from the shops. Be your own bank

 

[Garpal Gumnut]

Top summary gg! So let me get this straight, if the AUD exchange rate is down the POG goes up. Or if the AUD rate rises the POG goes down!

Yes, in my experience.

Always a risk though. If AUD/USD falls and Gold in USD rises = Great Profits
AUD/USD rises and Gold in USD falls = Great Losses

Problem is in Australia unless you trade Gold on overseas markets or derivatives or bar you only have a 6 hour window ( 8 hours in bar ) in which to make a decision. Which is probably not a bad thing as looking at it too much can cause too much anxiety or elation and lead to loss of sleep or put your heart rate up.

gg

 

[Stockbailx]

Yes just treat gold/silver as a currency and store of value in itself, thats what i do. And i treat fiat as just a medium to buy stuff from the shops. Be your own bank

Trading economics can be a complex issue. Yet in the same sense, stay with the basics and not get lost in the moment as I always do! Figure it to be common sense (cents)

Yes, in my experience.

Always a risk though. If AUD/USD falls and Gold in USD rises = Great Profits
AUD/USD rises and Gold in USD falls = Great Losses

Problem is in Australia unless you trade Gold on overseas markets or derivatives or bar you only have a 6 hour window ( 8 hours in bar ) in which to make a decision. Which is probably not a bad thing as looking at it too much can cause too much anxiety or elation and lead to loss of sleep or put your heart rate up.

gg

 

[Stockbailx]

here is a few thoughts on were POG may be heading;

 

[wayneL]

Yes, in my experience.

Always a risk though. If AUD/USD falls and Gold in USD rises = Great Profits
AUD/USD rises and Gold in USD falls = Great Losses

Problem is in Australia unless you trade Gold on overseas markets or derivatives or bar you only have a 6 hour window ( 8 hours in bar ) in which to make a decision. Which is probably not a bad thing as looking at it too much can cause too much anxiety or elation and lead to loss of sleep or put your heart rate up.

gg

If you buy gold or silver you are in actual fact in two trades. You are long the metal but you also in a currency trade, viz short AUD/USD.

This this applies for any asset we Australians buy that is denominated in American dollars.

 

[Garpal Gumnut]

Just on charting gold I find the Kitco.com 3 day line chart of Gold quite useful as well as the XE graph of AUD/USD. I don't buy Gold on the ASX often, mostly PMGOLD, but I do like to see a third day start to climb higher than the preceding day.

Hong Kong and Sydney tend to be more bullish with moves and London more bearish all the time. The US ones I don't follow as I'm asleep. Obviously if London is bullish on the day I keep a close eye for a rise depending on the AUD/USD as that is unusual.

Tonight's charts

So you are better off buying when the AUD/USD is high and Gold looks to be moving up, with the expectation that Gold will boom and the AUD/USD will fall.

We'll see how it pans out tomorrow.

gg

 

[Stockbailx]

Expecting POG to tank today giving the recent highs of the AUD as it continues to climb today...

 

[eskys]

Gold is up at the moment. So what happens if gold goes up in USD and our dollar goes up too? Will gold go down or up? This is a genuine question because I'm very confused about how forex affects the gold price

 

[Stockbailx]

Gold is up at the moment. So what happens if gold goes up in USD and our dollar goes up too? Will gold go down or up? This is a genuine question because I'm very confused about how forex affects the gold price

hard to say? The price of the AUD insinuates the price of AUS Gold. I don't know the price of Australian Gold but I know the AUD is, going either way if not falling, but looks to be climbing in the long term as I speak. decreasing the POG in Australia. I also know that the XAU/USD has been climbing this morning and looks to decline. Good Question! Early Days?

 

[eskys]

Maybe I should just forget about how it affects gold in Aus, Stockybalz. I only know gold in USD. My main interest is; how it will affect the price of gold shares....thank you for your reply by the way