[Lopen]

Wanted to ask a few questions about gold. I have been looking at this for quite some time now. I am curious to know what type of fundamentals move gold and if gold is better for swing trading and not intraday trading?

What type of traders are behind this contract? Any advice would be appreciated. Thanks.

[wsam29]

What types of traders?

All kinds, syndicates, floor traders, speculators, hedgers, tip takers, etc.

I have no clue what fundamentals moves gold but if you're wrong, you're gonna have to offset your position with an opposite order which adds fuel to the fire of the direction.

If you can stomach the moves, gold is a pretty good product to trade intraday or swing.

Gold is inversely related to the USD. Gold up USD should be down, etc.

[torero]

USD vs. GOLD should be good hedging vehicles.

[notouch]

Gold generally moves up as USD moves down (because gold is priced in USD) and also gold moves up as oil moves up. So the fundamentals that move oil and the USD also move gold.

[dalby]

gold is going up

of course, i have a LONG time frame. i started accumulating gold in 1999. i continue to buy dips and pare off some on thrusts upward

it is by most metrics, CHEAP still

[torero]

Very nice, dalby. Yeah, I agree things are bullish while the USD is helping its cause. How about silver? Any thoughts on this? Any correlations with other commodities?

[dalby]

i don't think the case for silver is as strong as the case for gold. this does NOT mean that i think silver won't go up concurrently with gold, it just means i don't see it as the longterm store of value/capital appreciation/hedge vehicle that i see gold being

i do own both

silver is, on average, more volatile than gold, which arguably makes it a better trading vehicle, depending on your style.

[notouch]

Silver has more industrial uses like photography, electronics and medicine. It's so volatile because it's heavily manipulated by a few large players. The same is true to a lesser extent of gold. With gold you're playing games with central banks and hedge funds who can drive prices up and down at will.