A breakout week for Gold? Watch Eur.500

[drbubb 0]

A breakout week for Gold? Watch Eur.500

If not this week, then next week maybe

===========================

 

GOLD looks set to breakout. The coming week will be interesting.

 

 

This is even clearer when you look at... Weekly charts for:

GOLD-in-Euros

GOLD-in-Trade-weighted-Dollars (a sort of Gold-squared)

- -

Daily chart suggests that Eur.500 is a key level to watch

 

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LINKS:

HPC- : http://www.housepricecrash.co.uk/forum/ind...showtopic=53125

GHPC: http://forum.globalhousepricecrash.com/ind...showtopic=21654

[doraemon 0]

A breakout week for Gold? Watch Eur.500

If not this week, then next week maybe

[...]

 

Hmm, I sort of agree with FP on this one: if liquidity evaporates, why would gold go up?

Surely a few HFs will be selling their as their investors want get out.

Do you reckon the central banks will just keep injecting cash at ridiculous volumes over the next few days?

[savo 0]

Still trying to get my head around this issue. But can anyone explain in simple terms how the main gold price chart could not just be about to replicate this??:-

 

Could it be that the price in dollars could collapse since the dollar could continue to slide? Whereas, since you are discussing things in Euro's you believe it will perform well against the dollar?

 

The main reson i'd feel very cautious about gold is that you seem to be making two investments, one in gold and the other in currency.........or have I got that wrong too?

 

Savo

 

PS Apologies for not asking this in the the beginners section.

[Tune2001 0]

Savo>>I think you want this!

http://www.commoditywatchradio.com/

Listen to Doug Casey talking about the phases of the gold bull market.

 

What you really care about when you buy gold is how it performs relative to your local currency. Even though, it is priced in dollars, what matters is how that then converts to your local currency.

 

You can, if you fancy it, make bets using instruments such as spreadbetting to make money off of movements in dollars.

[savo 0]

Thanks, Tune. I'll check that out.

[drbubb 0]

Hmm, I sort of agree with FP on this one: if liquidity evaporates, why would gold go up?

 

 

Gold will be the "last man standing" as people flee equities, dollars, euros, and bonds.

A store of value, which is not another's liability

[savo 0]

Gold will be the "last man standing" as people flee equities, dollars, euros, and bonds.

A store of value, which is not another's liability

 

Historically isn't movements towards gold not down to an inflationary environment? I notice you don't mention sterling. I'm assuming here (again, so sorry if i'm being dim) but are you linking the central banks interventions last week (and maybe this one) to an increase in the price of gold? I thought those interventions would be in the long term deflationary but maybe that's my wish rather than my understanding of the situation. Granted, Chinese inflation figures do point towards them exporting inflation in the near future.

 

I'll try and listen to the link 'Tune2001' posted asap, but there just seem so many angles with gold. Not least of all, as an individual you can chart and predict as much as you like but humans, being irrational, can always run in entirely the opposite direction to the one you banked upon. I guess that's investing.

 

To be honest i'm still struggling with how investors fleeing the Euro can be good for you if you buy assets priced in Euro's.

 

Guess I just need to do some reading, the only reason I haven't done so yet is there seems to be a very polarised element to gold.....lots of VI's.

[drbubb 0]

Historically isn't movements towards gold not down to an inflationary environment?

I notice you don't mention sterling. \

 

Gold has done well in deflationary environments too. Like the early 1930's.

 

Sterling will probably hold up better than the dollar, until it catches up with the

US economy- its now over 12 months behind. Then it may slide too, but probably less