What indices do you use to monitor Gold? Use GOX or the Comex (GC). GC and GLD (EFT) are almost Identical, do an Overlay and see what I mean. GOX (CBOE) works better with NEM and GG. Do not "THINK" when trading Gold. Use Tech Analysis and follow your charts, period. If you THINK you will be wrong 50% of the time. I am very methodical, you have to be or expect to lose a lot of money. I can look at any chart on any stock and tell you where I would have entered 100% of the time, NO guessing. Exiting is harder to determine. Quit "thinking" it will get you into trouble. Do you really "think" you can outsmart the Market or those guys at Goldman with PHD's? Trade your plan.
The gold has made a failed head and shoulders pattern at 560 dollar. It is expected that the gold will move during this month toward 690 and then another move to 770 as an indication for the oil price that also expected to climb above or near the $80 level. From my perspective, the current wave on gold is bullish.
You're right, F-T. Sometimes I think I should leave CNBC off because it gets me into trouble more than it helps: all of "the Fed blah blah blah" made me nervous. Basically I wait for the price to cross the SMA10 as my entry signal. I also looked for the range to exceed 6 cents like you suggested, but it must have been one of those "head fakes"this morning. I compared a one minute chart for GG GLD and GOX and there wasn't any significant lead-lag relationship that I could see. For the most part the peaks and valleys were in perfect alignment. Am I looking at the wrong thing? When you miss the start of a major move like this, do you jump in late or wait for the next one?
does anyone have an idea of the correlation between GG and GLD ? in dollar terms basis number of shares if one were doing a pair trade ? 1000 shares GG is equivalent to 1000 shares GLD ?
Would you kindly indicate what GG means, please? I know that the ratio between Gold to Oil is 1 to (7 to10) and Gold to Dow is 1 to (17 to 25) but what is GG? Please see this it may help you http://www.golddrivers.com/gold&Historicalnorm.htm