Gold Price - Where is it heading?

[Captain_Chaza]

Why ? You ask--- That is a Silly Question
I say "Why Not!"

Preview of this "Weekends are for Champions"

 

[Garpal Gumnut]

I thought it worthwhile to compare yesterdays trades in BTCUSD Bitcoin in $USD and XAUUSD Gold in $USD and GLL Proshares Ultrashort ETF in $USD









As one would expect there is an inverse correlation between Gold and GLL, the latter is a geared short traded on the NYSE. Gold lost 4% over the day and GLL gained 3.4%. This reasonable given fees. Care needs to be taken with holding GLL for longer than 1 day as losses and gains are magnified and it often plays catch up with the POG via the Bloomberg Gold Sub-index. Given its gearing these can be large and it has mostly provided negative returns to investors.

Bitcoin initially rose as gold fell but then lost momentum to finish little changed by the end of normal days trading. Having looked at the charts below carefully it makes me humble in attempting to predict prices of gold in to the future and also other entities reactions to a change in the POG.

gg

 

[Captain_Chaza]

A Technical Viewpoint -----

Sailing the GLL---One WEEK at a Time--------&------------------One DAY at a Time----------------------&-----------15 MINUTES at a Time--

 

[ducati916]

Would be interested in opinion on this @ducati916 You've been writing quite a bit on the US monetising gold or revaluing it as a means to clear debt. I'm not sure how or why the US is valuing it's gold at $42 an ounce, sounds a bit off.

As the evidence mounts for a revaluation and gold continues to rise in anticipation of that revaluation.

So if gold were officially revalued to $3000 which will be the market price in short order, what happens to the free market price?

It moves higher.

Why?

Because gold is gold. What has happened is that you have just devalued fiat currencies generally and the USD specifically. The market price with the USD valued at current valuations, ie. $42oz is a very different valuation if the official price revalues to $3000oz

jog on
duc

 

[divs4ever]

The big question is why?
What did the market see that caused the players to dump gold and silver in such a big way?
I struggled to find much that wasn't already known, more likely a good bit of the old "taking profits for the weekend" syndrome.
Still happy to keep trading PM stocks and holding real PM's.
Mick

dump ? or profit-take on winning options and futures contracts

there would be only a few players loading up on negative bets on gold ( and Central Banks would be among them ... short the contracts to take delivery cheaper ).

now the forgotten ( or ignored ) elephant in the room is .... Basel IV , it looks like the US and other laggards are going to be fully Basel III compliant by the end of the year .... will they start pushing for Basel IV compliance across the globe ?

 

[divs4ever]

The big question is why?
What did the market see that caused the players to dump gold and silver in such a big way?
I struggled to find much that wasn't already known, more likely a good bit of the old "taking profits for the weekend" syndrome.
Still happy to keep trading PM stocks and holding real PM's.
Mick

now another reason that comes to mind is

a major liquidity event where a ( or more ) debt-stressed entity is forced to sell ( or crystallize profits ) to satisfy debt repayment demands

BUT if that was a really big player , i would have expected a bigger down ( and of course that seller/s might continue that on Monday )

 

[TimeISmoney]

now another reason that comes to mind is

a major liquidity event where a ( or more ) debt-stressed entity is forced to sell ( or crystallize profits ) to satisfy debt repayment demands

BUT if that was a really big player , i would have expected a bigger down ( and of course that seller/s might continue that on Monday )

Quite a few people had shorts on gold, watched them all joke about it on the Traidview chat last night. Possible US brokers going by the banter.

There'll be some bargain gold miners coming up next week I would say.

With Trump being so unstable I would expect the POG to go back up again sooner or later.

 

[ducati916]

So gold is being drained from GLD even as the POG moves higher.

Who is custodian?

Why, JPM.



She is back advocating for monetising gold via gold back UST.

The purpose is to lower UST 10yr rates, which is one of Trump"s aims.

jog on
duc

 

[divs4ever]

most of the gold producers , that i am interested in , are still way above my target prices

the exceptions are two mixed resource miners that mine SOME gold but are considered as miners of other metals .. namely AIS and ZIM