Gut feeling GOLD will tank? Who is w/ me?
Gold has completed its November Bearish Doji-star formation. Doji star is usually a good indication of a change in direction of a very volatile trend, especially when it’s a monthly doji-star. Just yesterday, Gold has retreated back to it’s 50% retracement level after reaching it’s Dec. 2 low of 770. If gold fails to return or breakthrough it’s November high very soon. I believe that people will liquidate their gold positions and we’ll see a strong temporary drop in the price of gold. 0 is first target and potentially 0 in 2 weeks. Agree? Disagree?
Dude its gotta go down its jest gotta and I am still glad I keep away from Goggle, dam I am starting to feel queasy
NO WAY ,it will shoot up over 800 soon
The dollar has just began to rebound, expect gold prices to lower as this occurs. In the long run though, I would say Gold will continue to rise.
$1000 per ounce in less than 12 months. I did bet my money on that.
Why?
Money supply = 14% a year
Supply of gold = fraction of 1% a year.
The amount of cash grows many times faster than the amount of gold.
2. Yields on the government bonds in the US are close, if not lower than inflation. Why would investors want to but bonds in that case? They would aggree to a loss to flee risk? Gold is alternative.
Buy gold and silver since they are still cheap.
A Doji star is a sign of a change in trend but you forget that there are three trends: up, down and sideways. After it’s huge run-up, it is not unexpected to see gold consolidate. The dollar rally will hurt gold prices temporarily, but the dollar rally will only be temporary. You could hedge your gold by going long the dollar rather than selling gold and having to buy it back later, maybe at a higher price.
Yes, gold is overpriced. It’s all speculation that drives the price up. But I’m not making any bets on the price of gold because, as I said, it’s all driven by speculation, not fundamentals, and certainly not by technicals.
I am no technician but I have always thought that Gold is the market equivalent to the Emperors New Clothes. Its only worth something because someone is using it as a benchmark against something else (namely currency). I like earnings and discounting cash flows. Gold is confusing to me.