Gold is powerful today, having sold as high as 401.8 spot. Major gold stocks are all up, but on very ordinary volumes. Is this because of competition from Comp markets? NQ +22+ Are volumes on Golds waiting for correction on NASDAQ/S&P before confirming Bullion? Note: USD Up/Bullion Up - interesting.
I've said it once, and yet I'll say it again: The dollar is a smoke screen for why gold is moving. China and a down-the-road inflationary environment for the USA are the real reasons, China's insatiable demand for metal resources will continue to keep supply under pressure. Does gold have more upside? So far I would say yes, the price action indicates this to be so. It is always possible that the trend could end at anytime, but so far it looks good. It never hurts to lock in a little profit in this area if you wish though. Goodluck,
Agree with your long-term analysis. Was just puzzled by the anaemic volumes on gold equities on what should have been a banner day. Prices moving nicely, but no confirmation from volume. Technically, this is not positive for the current run, but who knows - maybe it's just that there's only so much cash to go around and today it's going into other sectors. If other sectors correct in next 2 days we might see volume.
I would tend to agree with the accessment that dollar is a smoke screen. Gold could go as high as 800 or even 1000. China and Japan, who owns the majority of US treasuries have reduced their buying. The influx of foreign capital went from 40billion a month to something like 4 in just 1 month. I would venture to say that these 2 countries and some other ones are quickly and very quitely unloading their dollars for gold. Again I could be wrong, but this is a crazy time right now for world economy.
"I would venture to say that these 2 countries and some other ones are quickly and very quitely unloading their dollars for gold." no chance the gold market simply isn't big enought
Japan bought about $100 Billion U.S. trying to keep the Yen down. Switching even that relatively small amount would shoot gold to $1000.00+ .
keep in mind that lots of gold mining companies hedge to try to maintain a more level target price for their short term reserves. Because of this reason gold stocks are a lot different than gold futures or actual gold.