And you've been bleating on about gold's demise for years,,yet it's still holds it higher value
Gold and silver are declining when the goldbugs tell us that they should be going up. The usual stuff, manipulation, paper, printing, banksters, yadda, yadda, yadda, but for nearly 1 year gold's going south.
I guess that makes gold money and more valuable if/when the changes to its status go through. Although I won't pretend to understand what it all means exactly especially between Teir 1,2 & 3 but banks might be more inclined to hold it as a reserve if countries around the world are trying to devlaue their currencies to gain export competitiveness.
Sorry Skol I agree that gold generates no income but as money, restrictions on the supply of gold would mean it should hold its value against the $US, Euro etc. especially if they are printing more. Although that said as a commodity the high prices must have set off a lot more digging and exploration. Is there anyway to guess the increase in supply of gold over the last few years. As a greek person would I be happier holding Euros that could turn into Drachmas overnight or gold? Still speculative but to me doesn't seem far off holding any other currency like $US or Euro.
I agree with your points Aaron. Here's something from Jeremy at Ino.com
From a technical perspective, (see chart) the August Gold is in a range between $1530 and $1640. You will notice that prices tested last Decembers low three separate times in the month of May before hitting the $1640 high, and has been very choppy since then. The low prices from Friday and today seem to have targeted the Fibonacci 2/3rds retracement, but fail to convince me of a directional play yet.
I believe that this week’s trade in the Gold market will depend mostly on how the earnings are reported in the US. After seeing how much the jobs number affected Gold on Friday, I have to believe that the same rules apply this week. As mentioned earlier, the FED is still deciding whether or not to ease again. As backwards as this may sound, a string of disappointing earnings may tempt traders to try to get ahead of the FED and begin buying markets like Gold that would be favored by a weaker US Dollar. In today’s trade, the Dollar is attempting to test the June high, and the Euro is trying to hold the June low. If these two markets stay tamed, we should expect a choppy Gold trade as well. I believe that Gold traders will continue to hold prices in this $100 range until the FED decides whether to stimulate again with another round of easing. This week should then provide both day and swing traders with decent opportunities to scalp.
I'm not a swing-trade person, but I am interested in hearing about QE3. Still a lot of people half expecting this to occur soon. It will have an immediate effect on the gold price if the FED even obliquely mention it.
Overnight 10th July, Gold dropped in 6 hours to US$1566/oz, but this article anticipated that.
If I had some spare cash I'd be buying gold shares and even gold, on these dips. It doesn't surprise me that gold has not crashed, it's just stuck and the wheels are spinning, anytime soon the race to the top should be on again.
Here is a chart which suggests that the POG has tuned up. Waiting for it to get above $1600 reminds me of the push to get above $1,000 a couple of years ago.
6 months going sideways as long as it stays above the 1525-1530 mark (January low) has got to be better than the previous 6 months.
Loss since the August 2011 high. 15%. Not so bad compared to many stocks, especially Gold stocks. Got to be a bargain somewhere amongst that lot. Surely?
Originally Posted by JBmurc
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