Gold is Daily/Weekly/Monthly overbought. I expect a significant correction soon. Not very good timing to buy Gold right now IMHO...... XAUWCU (Gold vs. World Currency Unit) Monthly chart:
So it seems the 1750 level is a hard resistance level? Have not seen it breach that level much, and boy those bounces down are rough...?
Yes and if one were to use $GOLD as a bellwether, the shaking which is currently going on can further be appreciated. Lots of false signals for the longer term traders atm. The weak USD and the recent strong US stock market creating problems for gold, doesn't know which way to turn, along with Corona virus and freight travel restrictions, plus discretionary spending curtailed somewhat on gold jewelry.
Caixin Mystery of $2bn of loans backed by fake gold in China Nasdaq-listed Kingold's play for trove of property stymied by corruption probe The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production. © Reuters More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses. Kingold is the largest privately owned gold processor in central China's Hubei province. Its shares are listed on the Nasdaq stock exchange in New York. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder. What could go wrong? Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers. The fake gold came to light in February when Dongguan Trust Co. Ltd. set out to liquidate Kingold collateral to cover defaulted debts. In late 2019 Kingold failed to repay investors in several trust products. Dongguan Trust said it discovered that the gleaming gold bars were actually gilded copper alloy. The news sent shock waves through Kingold's creditors. China Minsheng Trust Co. Ltd., one of Kingold's largest creditors, obtained a court order to test collateral before Kingold's debts came due. On May 22, the test result returned saying the bars sealed in Minsheng Trust's coffers are also copper alloy. Authorities are investigating how this happened. Kingold chief Jia flatly denies that anything is wrong with the collateral his company put up. The case holds echoes of China's largest gold-loan fraud case, unfolding since 2016 in the northwest Shaanxi province and neighboring Hunan. Regulators found adulterated gold bars in 19 lenders' coffers backing 19 billion yuan of loans. In one case, a lender seeking to melt gold collateral found black tungsten plate in the middle of the bars....... More.... https://asia.nikkei.com/Spotlight/Caixin/Mystery-of-2bn-of-loans-backed-by-fake-gold-in-China
I like gold but I have heard bad things about GLD which I had but sold out. The ETF (GLD) refuses an audit for the physical gold. I am still long silver(SLV) and SGOL, GLDI (pays annual 11.53-percent, monthly)