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 Replies: 9 / Views: 1,559 |
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Pillar of the Community
United States
931 Posts |
All of the talking heads are still saying that gold is in trouble, yet it is up about $15 today. I hear some say that they are getting out of the Swiss Franc for long term safety. Some say that there is a big announcement coming out of Europe tomorrow. Some say that the trade is dead and slowly moving back to below $1500. I think that it's because nothing has changed regarding the stability of then world economy and enough people believe that to keep it moving up slowly.
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Valued Member
Canada
442 Posts |
link to announcement in Europe?
US dollar index dropped 1% as well!
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Pillar of the Community
United States
830 Posts |
Yeah its going pretty good again.
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Pillar of the Community
United States
1150 Posts |
Gold is in trouble?!?! HAHAHAHAHAHAHAHAHAHA
They must have NO CLUE how much money has moved into gold this last year!
Gold is up because people are selling other stocks and buying into gold.
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Valued Member
United States
302 Posts |
$15 does not even keep up with the value of the dropping dollar and is really an insignificant move at less than 1% of the value of gold. Check this link out: http://www.kitco.com/kitco-gold-ind...campaign=KGXA 1% move up at this point tells me there is fairly strong resistance on the topside. That does not mean it won't continue going up. What I see is that the price MAY test or break the high this week. If prices fail to pierce the current high and stay above it, I would expect a large drop very soon. I think the high is in for this runup, but until I see confirmation, I won't believe it. One thing to note is that, before major stock market crashes, the market typically struggles up all during August before making a near term high near Labor Day. PM prices are dependent on available money just like the stock market is, so TO A DEGREE SHOULD mirror this scenario. I have not done a study relative to this, so cannot say for sure it really happens. What I do know is that in 2008 PM took a serious dump (30% for gold, 60% for silver) during the crash then. The stock market since then has come back most of the way while PM have been making new highs regularly. And the stock market now looks very weak, possibly pulling PM down with it, but NOT back to 2008 levels. |
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Pillar of the Community
United States
667 Posts |
The big event this week is tomorrow's meeting between the leaders Germany and France. They are expected to come up with new plans to solve the euro zone debt crisis. One idea that has been floated is the creation of a euro bond. Many analysts see this as a positive development, but Germany has indicated that in their view, this is not an option.
There is no set rules to the market and charts are useless in this market place.
It is simply that there is high volatility in the stock market. As this volatility grew July through August the gold price benefited from this shift and increased very sharply.
In other words, as the uncertainty in the financial markets grows, traders tend to seek a safe heaven, which is usually gold; these changes consequentially drive gold prices up.
There will be market corrections and the only thing that ever troubles me is that after a high people start talking about the crash. Of course there will be a correction and it will happen some time after the high.
Finding the indications to say it will take place tomorrow is fantastic, however keep talking about it coming in a few months is a 50-50 draw or just a wild guess that could make you right.
Not picking on you but everyone expects a correction but we are in a very different economic situation this time. The market will not follow the norms. Being the the growth in price has been fast and record breaking over the past year means something will happen.
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Pillar of the Community
 United States
931 Posts |
Mkfarm. You are a great contributor. Thanks for your time.
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Pillar of the Community
United States
667 Posts |
I'm just like everyone else trying to figure this out.  I don't know any more than the man in the moon. I'm actually cautious right now. Part of me thinks higher gains are to be seen and the other half is concerned about a hard fall. So that makes me undecided at the moment. The translation is that I am buying but looking for bargains while not going overboard on the amount of new dollars I am speculating with. My contribution to the forums - meaningless just another hack with an opinion that could be going up the wrong creek. I definitely wouldn't follow my lead I just strongly advise to find your own indications and use a lot more than one or a few sources. Who knows I could be eating crow in two months when mmerlinn hits the market correctly. Maybe I would be better off in the auto parts business. |
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Pillar of the Community
United States
931 Posts |
I think it also obviously means that a lotn of gold owners are in it for the long haul and not making a trade out of thei gold holdings.
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Pillar of the Community
United States
5833 Posts |
Summer time are usually sell off for stocks, but as mentioned this is not the norm.
I am sitting on the side line for the short moment, one thing I look at is the dollar against the Chinese yuan USD/RMB exchange rate, the reason for gold going higher is definitely the Chinese not wanting to invest into our deficit, or probably anyone else.
Now the US government owes less to the China...anyone else see a pattern?
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Replies: 9 / Views: 1,559 |
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Posted 08/15/2011 2:05 pm
