Does gold need a breather?

Discussion in 'Commodity Futures' started by peilthetraveler, Nov 23, 2009.

  1. Watching it go up and up and up day after day....Even I think Gold needs a little bit of a pullback and I'm a gold bug! I wonder when the profit taking is going to take place or is everyone buying to hold until the collapse of the US dollar.

    Even though I want gold to $1200 then $1500 then 2k per oz, I think we need at least a breather to $1100 or $1115.

    I decided to make a short term play and shorted it at $1,159 and as we speak, im a little in the red as the price is now $1163 hitting a new all time high. I will probably take myself out of the trade if it hits 1168-1170 range.
  2. jnorty


    If the usd collapses right here it would be the most crowded and well known tade to be right in world mkt loves to crush the crowded side.not saying eventually it doesn't happen just hard to see it without some rattle back up first.
  3. I am long GLD, SLV and GDX as well as several mining stocks. Even so, I keep hoping that gold will go down for a few days so I can buy more. A lot of people must be thinking the same thing because the only way to get in on a pullback for the last 3 weeks is intraday. Unless the Fed raises interest rates, stops printing money or the Congress cuts spending, look for gold to keep rising.
  4. I just got out at 1163 and am now long....why fight it.
  5. And this is how people loose all their money.

    You can be bullish on Gold, but to say that you want to keep buying and buying is called greed and will cause you to loose your money.

    Gold can go up or it can go down. To assert that gold will go up because of the Fed is ignoring the fact that if the central banks sell watch out below!

    Gold went up because India bought the metal! If India had not bought the metal there would be no rally. In other words Gold is running on hope that some other country will be foolish enough to buy Gold at these levels.
  6. If buying pullbacks in an uptrend is called greed, then I guess I am guilty. I use fundamental analysis (supply and demand) to choose a market to trade and technical analysis to time my entry and place my stop losses. I like to see a pullback on declining volume to support and the commercial traders (per the COT report) increasing their buying to confirm that the pullback is not actually a reversal. In addition, I have a diversified portfolio and do not place all of my eggs in one basket. So far, it is working pretty well.

    India bought gold at these levels for a reason and other creditor nations could do the same thing reasoning that the dollar may continue to decline and it is safer to have a higher percentage of their reserves in gold. I have no idea what is going to happen to the price of gold in the future and it could certainly fall as you suggested. But staying out of a huge rally because it is at record highs could be just as foolish as betting the farm (as you seem to erroneously suggest that I am doing). However, I do agree with you that blindly buying one market that is rising is unwise.
  7. Selffulfilling prophecy. Every hedge fund out there is long Gold. Should be another desaster coming...
  8. Darshan


    I remember watching Crude Oil... this trade seems very similar. Everyone thought it needed a breather, there is no reason it should be this high, yada, yada, yada....

    Then it proceeded to double, triple in fact.

    Gold has an agenda and it's going to fulfill it's agenda.
  9. ElTrader


    I just got out as well, no regrets yet. Sold the gold on 1165. I still own some silver though, not much happening on that front at the moment, but in a few years... So far precious metals is wokring out great for me.
  10. This is certainly looking parabolic now. I took a little piece of my account, opened a new account, deposited it and will run as long as I can on this silly train- keeping stops very tight.
    #10     Nov 23, 2009