Gold

[Daytr]

Yep I suspect a few shorts were locked in at the upper end of the channel. Pretty typical trading mentality. Likely some will already have taken profit & its also likely some shorts remain & more shorts will nee to cover if $1275 is broken. Just a matter of time with what we are seeing going on in the Emerging Markets imo.

Interesting moves on the gold market today. It got just above 1275 then got smashed down to 1257. Currently moving up again (now at 1261)

[Daytr]

From a report on Bill Gross Head & founder of PIMCO the world's largest bond fund.

"While Gross commented on Pimco's future without El-Erian, he dedicated much of his letter to the state of the U.S. economy, noting that the lower U.S. government deficit is slowing credit growth, which could hurt economic growth and risk assets.

Slower credit growth, Gross said, is negative for the economy in the near term since credit growth is critical to support prices of riskier assets.

"Our PIMCO word of the month is to be 'careful,'" Gross said. "High quality bonds will continue to be well bid and risk assets may lose some luster." "

So what he is in effect saying is that the US Government via the FED has been financing growth in the US by over spending & borrowing money to fill the gap (QE). True the deficit is narrowing & QE is being tapered, however if QE was the only reason the US had growth, hold on to your hat (!) and don't hold onto your shares! Outside of gold producers of course!

[Daytr]

Moosie, what basis do you have when saying gold is looking very toppy? If anything looks like its topped out its the DOW. It should have held support at 16k & then again at 15.75k, both failed. Next major support line is around 14.5k to 14.75k.

http://finance.yahoo.com/echarts?s=%...ale=off;source=;

[Daytr]

Fair enough Moosie we each have to form a view. Mine obviously differs from yours. What I have liked about gold's performance is that each time it has tested resistance & failed, the selloff has been shallow & it is building higher lows & higher highs. Only last week resistance was around $1268 & now its $1275 not huge but its still higher. Yes gold could fail, however it would need to break downside support to be back in a bearish pattern & it hasn't even tested that for some time. It could re-test the $1180 lows again sure, but again it needs to break those, something it hasn't done in over 6-8 months. If gold was to turn bearish & get slammed this is the week to do it with China out. I expected at the end of January that shorters would come out & do exactly that, as there is a lull in physical demand & the Chinese buyers are on holiday. However two things that are connected & one that's not has put pay to that. 1) Tapering, equity markets have struggled since tapering was announced & gold has benefited some. 2) The Emerging Markets are creaking everywhere you look. This can be connected to QE & now tapering as well. 3) Weak data out of the US probably mostly caused by weather. True this won't last, however it will impact earnings for Q1 so expect the impact to last for some time. Also what impact will tapering have on growth when someone like Bill Gross says its responsible for a fair amount of the US growth to date.

[Bobcat.]

Thursday night rally? If so, 1275USD could well be busted.

[Daytr]

DOW up around 1% & gold basically unchanged, after being up prior to the number & a speech from the ECB. Tomorrow's number no matter what it is, (& I suspect it will be a shocker due to weather), will be dismissed because of the weather, so its hard to know how markets or the FED in regards their tapering program will react.

Nope, jobless claims came in below expectations. Another (smaller) shooting star on the charts. Bulls quickly running out of steam and if tomorrow's job reports comes out better than expected then we can expect a busting of $1250 as bears gain control again. Higher volume suggests traders are taking the opportunity to sell out on peaks. Don't take my word for it though:

http://www.kitco.com/ind/Hug/2014-02...al-Market.html

[Hoop]

Moosie has a little bearish TA news ...Daytr is bullish on recent events which positive for Gold..... Colin Twiggs medium term chart (via Email) has bullish news.......Hmmmm let's do some homework..

When something breaks short term you put into prospective with a medium term chart....same with meduim term charts, have a wee look longer term..

As you can see the longer term chart shows a triangle within a larger triangle pattern with both apexs near each both....the breakout is still caged in the larger triangle pattern, that unfortunately dampens ones enthusiasm somewhat about the breakouts (triangle + MA50)...but any recovery has to start with a breakout somewhere ..eh?...so the bulls will be celebrating with this small victory with lots of noise to help carry this momentum on upwards and onwards to better things...

The next hurdle is to break through the top of the resistance zone around the 1250 - 1270 area

[Daytr]

Cheers Hoop. TA has never been my strong point, but I do value it, mainly because I am aware so much of the market trades that way.

[Skol]

The trend is still down.

http://www.dailyfx.com/forex/technic...aves_gold.html

[Bobcat.]

Many .ASX PM digger stocks are rising today: NST, NCM, OGC, PRU, AQG, EVN, TRY, RSG, TGZ, GOR, etc.

Several of these have been sliding this past week and dipped nicely before rising again...through next week?

The usual Friday sell off has not happened (yet).

Even uranium stock PDN, Botswana copper digger DML, and coal digger COX have all again found their legs.

Just luvly.