as far as I can see, gold closed the floor right near 795. I would say gold is holding the higher end of the trading range at the moment which is 770-810. The weekly close for both gold and silver is just slightly higher but the technical indications from the gold shares especially seem to be signaling that an upside breakout is very near. I continue to hold comfortable CBOT positions and will remain in for now. The XAU especially looks primed for liftoff imhv...
GS last week, JPM this week with a twist... <B>JPMorgan favors precious metals in 2008</B> http://www.reuters.com/article/marketsNews/idCAN0744794120071207?rpc=44 NEW YORK, Dec 7 (Reuters) - Precious metals could rally in 2008 as the U.S. dollar falls and supply flattens, JPMorgan said on Friday, ranking the sector the strongest among all commodities for next year. JPMorgan said its favorite precious metals continued to be <I>gold <XAU=> and platinum <XPT=>, with their respective prices expected to average $815 an ounce and $1,475 an ounce for 2008, <U>with risks strongly skewed to the upside.</U></I>
Another "golden pennant" appears to be forming from this latest correction/consolidation period. Once gold breaks back over 825 then the bulls regain control imo...
HUI broken out of trading range touching 419, previously bound by downtrend line at 415 today with base at approx 400. Fast MACD turned up and crossed over the slow signal line, also approaching the zero line heading northwards. Gold up $17 dollars at its peak so far today, probable 25 basis point cut tommorrow. The stars are aligning people, I'm certainly not seeing the 'major price collapse' some were touting on here a few weeks back. More like on the verge of a major price spike if you ask me. Get long and enjoy the ride people. Also even though it's been said by many before, Realist, your comments are sound, well thought through, unemotional and very much respected & appreciated. Keep up the good work. Ad
I got news for ya'll, once 850 is broken to the upside the action will get even more intense. I can't stress the importance of just taking a position and sitting with it. Many traders will try to game the action and they will make nothing and/or lose everything in the process... Thanks again for the feedback. As a trader, I am not always 100% and nobody ever is. However I believe that my vision is correct and I plan to take full advantage of what is on the horizon...
11:45AM EST 12/11: Bot into the following gold and silver equities on this smackdown in the Dow -210 on Fed day. These prices will not last long down here imo... GDX MDG SLW KGC GG
Got out today at 805. Just think there is more downside than upside at present. Will look to buy if it falls a lot lower.
Snapback selling across the board today after the FOMC announcement. It's no surprise to me that gold was taken down after the close of the floor to coincide with the pummeling of the equities markets. This was likely an influenced day and a pullback was needed to relieve the overbot conditions on all sides of the markets imo. I bot more gold shares as the risk / reward ratio at this point couldn't look much better and I am planning to add to futures if the price weakens much further. I am a believer here and I have decided to add and not too sell. Time to sell on this run will likely come in late-Feb. or very early March timeframe...
You could be right. But I expect the dollar to strengthen here, and equities to drift. So I think these reasons will make gold fall in the short term.