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pushpacares007

Gold is All Set to Move Up

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This is a good call! Well done! I have done quite a bit of commodities trading and especially gold futures and the like. I was so sure that gold would continue in its recent down trend mainly because investors are preparing for the next round of corporate earnings being released.

We all know the negative correlation that exists between the price of the precious metal and US stocks think gold reaching an all time high during '08 financial crisis and the 1987 stock market crash among others.

It seems that gold is being driven by buyers who are pleased with the recent lower prices of the yellow metal!:cool:

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I believe gold will move up as the european debt crisis is far from over and significant economic and policy uncertainty coming from the fiscal cliff debate in the US will drive the "conservative" money in to the safe heaven metal.

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I believe gold will move up as the european debt crisis is far from over and significant economic and policy uncertainty coming from the fiscal cliff debate in the US will drive the "conservative" money in to the safe heaven metal.

 

 

 

I totally agree with ntrader

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Is it time to sell Gold or to buy Gold or to forget about it?

 

Gold fell $25 yesterday; it now stands at $1,575. The price could break all the way down to $1,000. But I don't expect it. Gold is not in a bubble.

 

As you have seen, gold is neither over-priced nor under-priced. It buys about what it should buy. Maybe a little less. Maybe a little more.

 

How do we know what gold "should" buy?

 

We don't really. But gold is a natural thing.

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Do you trade tornadoes, tidal waves, and earthquakes ? I never knew this :haha:

 

Why not? Traders have made good money in insurance stocks, big box home improvement stocks, and commodities, for example, when natural disasters provide the opportunity.

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Do you trade tornadoes, tidal waves, and earthquakes ? I never knew this :haha:

 

i dont but you can using insurance....(I just saw DbP pointeed out the same thing)

There are also carbon credits and weather futures.....plus backing sporting teams and horses odds change with regards the weather conditions

 

I was more laughing at the quote "But gold is a natural thing"

How often people think that because something is natural it is 'good' or has some sort of positive value....does it then mean anything not natural cannot be valued....

(Take this in the light hearted approach it is intended - or dont)

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How often people think that because something is natural it is 'good' or has some sort of positive value....

 

I always get a kick out of these labels that proclaim "organic sugar" . . .

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i dont but you can using insurance....(I just saw DbP pointeed out the same thing)

There are also carbon credits and weather futures.....plus backing sporting teams and horses odds change with regards the weather conditions

 

I was more laughing at the quote "But gold is a natural thing"

How often people think that because something is natural it is 'good' or has some sort of positive value....does it then mean anything not natural cannot be valued....

(Take this in the light hearted approach it is intended - or dont)

 

I am aware of Derivatives on Weather and Electricity etc but I have never heard of any derivatives on Volcano, Earthquake, Flood, Tornado etc. that is why I thought of asking you.

 

Lets not digress from the topic to be discussed on this thread i.e. Gold .... :)

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I was more laughing at the quote "But gold is a natural thing"

How often people think that because something is natural it is 'good' or has some sort of positive value....does it then mean anything not natural cannot be valued....

(Take this in the light hearted approach it is intended - or dont)

 

Actually gold is natural since it is caused by nature, unlike the paper some exchange, which is printed by a bearded Jew and created out of thin air.

 

And personally, when it comes to valuing an asset, I'll take the one that has been used as a store of value sine the origin of mankind, above the one which is controlled and manipulated by a few corrupt in power.

 

As for the gold chart:

 

We are still at support so I am only looking for longs unless there is a breakout.

 

Price had a sharp decline to 1540 and rebounded with Strength. If price now makes a Hl above 1540, this is a good buy or an opportunity to add longs.

 

Stops are placed below the danger point, that is 1540.

 

 

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Nothing much to say today. Stocks still going up. Gold still dilly dallying. Gold is waiting to see what happens. Japan and the US are pumping up the money fast. But the ECB has let its base money decline.

 

Result: slightly less global paper money ...and a slightly lower gold price. Seems logical. Sensible. Gold is the world's alternative money. The supply of paper money goes up...and you get more paper for each unit of gold. That's just what you'd expect.

 

But the pundits are sure the end of the gold bull market is at hand. Who knows? Maybe they're right. But it seems more likely that when the Japanese get their presses running hot the price of gold will resume its upward climb.

 

Or, looking at the big picture, the central banks of the world have decided that money printing is the solution to low growth and high unemployment. Unless something happens to stop them, they'll probably keep increasing the money supply. And the price of gold will probably keep going up.

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I think many traders are dumbfounded by gold's move, it just doesn't make sense. I don't find an explanation for its behavior, is their anybody out there that might have any ideas?

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I think many traders are dumbfounded by gold's move, it just doesn't make sense. I don't find an explanation for its behavior, is their anybody out there that might have any ideas?
yes it is manipulated pure and simple. Massive paper selling to drive price down so banks can scoop it up for the coming massive rally. See when QE increases (not decreases..regardless of what fed says publically) people will flock to gold

...the bank are getting set as i now as i write... Are we?

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I think many traders are dumbfounded by gold's move, it just doesn't make sense. I don't find an explanation for its behavior, is their anybody out there that might have any ideas?

 

There is no mystery or conspiracy. There is more supply than demand. Supply could be short sellers or longs who are liquidating or are too scared to stay long. Bottom fishers who bail quickly are also in the supply group. The market always makes sense.

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Massive paper selling to drive price down so banks can scoop it up for the coming massive rally.

Is someone making paper sell so that the banks can benefit from lower prices?

I suspect just the opposite. the media is trying to pitch that gold is at bargain prices so the "sheepies" buy.

 

See when QE increases (not decreases..regardless of what fed says publically) people will flock to gold

...the bank are getting set as i now as i write... Are we?

We may have further QE's in the future; in fact, this QE is not over yet. However, the fact is that trillions of dollars have poured into our economy over the last almost 5 years and all this money is going to have an impact. I will guess that we see quarterly gdp growth increasing to high single digit rates in the near future maybe even a double digit print. The Fed will begin to include tightening language in its policy statements to keep inflation from getting out of hand.

 

If my scenario plays out, then QE's will be pushed way out into the future; perhaps it will happen in another 6-12 years. Gold prices would then rise again, but who know what level they will begin rising from.

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In my opinion, before gold move any higher it will go back to its' most recent support of 1180 dollar per ounce and after some consolidation break the support for final support of 1000. I guess that would be the final bottom. By looking at charts I see that buyers keep coming in, but sellers still outweigh them. Resistance is now at 1270. I think it will hold for the time being. By the end of summer we should see more significant rise.

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