Discussion in 'Economics' started by peilthetraveler, Sep 8, 2009.
We blew thru to 1030$ today but now down to $1002. Could the days of 3 digit gold prices be gone?
Gold will remain $950 or lower in the long run.
"Gold bulls are easily spooked around these numbers and
need to see them sustained to bolster confidence. Gold is
rallying on fears of an equity retreat. The risk is that stocks
will fall and people are hedging that by buying gold," he said. Asian stocks were up marginally on Tuesday. For a graphic on gold futures versus the S&P index click:
here Traders said volume was not large and as futures slipped
soon after hitting the key level, and with spot struggling to
extend gains towards $1,000, prices might languish during Asian
trade. "I think these high levels could trigger selling ... and it
might be difficult for gold to sustain the $1,000 level," said
Shuji Sugata, a manager at Mitsubishi Corp Futures & Securities
in Tokyo. Investment flows took a break, with the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust GLD,
saying holdings stood at 1,077.63 tonnes as of Sept. 7,
unchanged from Friday. [GOL/SPDR] The dollar steadied after falling the previous day as the
weekend meeting of G20 finance chiefs boosted investor appetite
for growth-related "riskier" assets like commodities and
stocks. [FRX/] FXNEWS
We blew through 1030? When did that happen?
Opps...i misread the article
Looks like it only went to $1007. I should've verified with kitco before I posted or read the article more clearly.
I guess thats what happens when you try to speed read thru stuff.
Inflation hawks, flight to safety camp, and and to a lesser extent jewelry demand are the drivers in gold. With global money machines running overtime it is hard to imagine inflation hawks not continuing to accumulate gold.
Many people expect a pullback in the equity markets to ignite the flight to safety camp, which historically it does, but keep in mind that higher stocks and a recovering economy are seen as inflationary as well.
We'll need to see gold stay above $1000 an ounce till close of the week before I'd join the bulls.
I'd personally short it at these levels. There are too many interests at work to keep gold above $1000 an ounce.
I do think oil will close the year above $100 a barrel on the demise of the dollar.
Market is all manipulated anyways. Wall St is nothing more than a giant slot machine.
Gold is going higher in my opinion, 1100-1200, early 2010 and as high as 1500 is not out of question over the next 2-3 years.
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