Actually, they can serve as an important contrarian indicator, so value them for what they are. Also, I would say anyone focusing just on the technicals and not also on the fundamentals of gold is missing more than half the picture. That said, I do hope that gold (and particularly silver) pull back from here, as I've got a nice ladder of buy orders in at lower prices that I'd love to get filled.
Gold is way too high here. We should see a nice retracement before we break 1000.Im buying @ 800-820.
I have been bullish on Gold for five years. I just believe we will see a short term retracemenrt before we break 1000.
For 5 years now the dollar has been going down. What will happen now that the dollar is going up? Has gold ever went up with the dollar? The answer is since 1980 (all the data I have) the answer is no.
And for a few weeks in dec & jan, the answer is yes. The question is will this positive correlation continue? Or is it just temporary?
can anyone confirm this chart? (I'm talking about the increase in M0) i find it unbelievable maybe the data was published in error
I haven't read the article but the problem I have with these types of articles is that they're written by someone who wants to sell me something. That means they're biased. Do you think they're going to tell you now is not a good time to buy gold? Never. It's always a good time to buy gold. And the gold bull market gave them everything they need. I do read the gold dealer's articles because I like to be informed and in general what they say about the economy is true and interesting. Long term I think they're right but that doesn't mean they're right in the short term. For example they write about how massive inflation is going to hit. The thing is they can say this every day and still not be wrong because even if we don't have inflation they say it's coming. When the bailout package was voted in people including myself thought this would mean inflation. So far it hasn't. The dollar has started a nice bull run. Why? One reason or theory is that the dollar isn't really getting stronger, it's just getting less weak than the foreign currencies. The British pound has taken an absolute beating. So bad that it's becoming interesting for those in Europe to order from England now (the pound is approaching 1:1 with the Euro). This is because Britiain's financial problems are getting worse whereas the outlook for the US is looking better (at least short term.. this could mean that instead of being better it's simply not as bad as we thought). So yes massive inflation is coming but maybe not today. Gold could potentially drop down to $255 again before we see it (assuming the dollar continues its climb). Then when the dollar starts dropping gold would go back up to 900. So yes gold could gain 300%. But that doesn't mean it'll gain 300% from 900. Finally, many including myself are expecting a rally in the stock market. A bear market correction rally. This could also drive people out of gold and into the indexes. When the rally tops out (possibly around 1050 but maybe higher) people will have moved money out of gold and into the indexes, just in time for another bear move down in the indexes which would make gold look more interesting and possibly move up.