Gold Above $900 Again
January 24th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
UPDATE 08:25 GMT: GOLD $920
WEEEEE!
Congratulations to everyone who caught the falling chainsaw in Cryptogon’s Reckless Speculation and Pachinko Lounge the other day!
Wee!
For anyone keeping track, the trade was based on several factors:
1) $850 was the previous all time high on gold.
2) $850 was the 50% retracement level on the Fibonacci grid (drawn from the low on December 17, 2007 to the high on January 14, 2008).
3) $850 was the 61.8% retracement level on the Fibonacci fan (drawn from the low on December 17, 2007 to the high on January 14, 2008).
4) Intraday RSI and Stochastics were blown out oversold.
5) Hourly MACD crossed up.
6) The bounce off $850 formed a bullish hammer on the one hour interval chart.
UPDATE 06:45 GMT: Gold Climbs Above Previous All Time High
Prints inside $915.
Speculation on which way Helicopter Ben’s jetwash is going to blow…
The overhead resistance was around $914.
At 6PM EST time zurich bullionvault gold has a sell price of $915.06/oz. All three locations have a buy price at $915+, NY at $919.
Gold near history high [reuters]
Spot gold hit an intraday high of $913 an ounce, within sight of last week’s record high of $914 an ounce, before dipping to $909.55/910.50 an ounce, still higher than $907.00/907.70 an ounce late in New York on Thursday.
Sonoda said expectations of further U.S. interest rates cuts, which have underpinned a recovery in stocks markets after a rout at the start of the week, have encouraged investors to buy commodities.
“That’s a very good environment. By the end of June, gold will reach $1,000,” said Sonoda, who also expected more investors to shift to gold from government bonds.
Interesting that $TNX made a quick turnaround
“They” may know about the rate decision. I noticed that this (gold rose sharply) happened before the last emergency cut, and the one that happened before.
Right now Fed Fund futures show 90% chance of a rate cut at the Jan FOMC.
Cleveland Fed – Fed Fund Rate Predictions
WTF’s going on? Gold’s over $920 right now.
Don’t kill the messenger, gang, but here’s how they’re playing it at marketwatch: http://tinyurl.com/3b6uzf
From what I’ve observed, gold has tanked pretty much every time the market has, which (I’ve read) indicates “investors” selling their gold to pay for margin calls on their stocks. And of course, when not even a whisper of a margin call can be heard, money flows back into gold. Makes sense to me.
Definitely seems like a “buy on dips” opportunity.
Good point, anothernut.
Will Fed’s Ease Create Gold Bubble?
Remember, the Fed is easing with gold at an all-time high. When has this ever happened in history? It hasn’t, because never before has the threat to the financial system been so horrific due to all the leverage and financial engineering that has built up over the past 25 years. To allow this to “unwind” (as it should have been allowed to years ago) is now virtually impossible due to the dire consequences involved.
as Brad points out, this really does show that the US$ is truly fcuked. they are basically giving away the stuff but no one wants it. they are desperately seeking alternatives…of which gold is the first thing they can grab as they fall over the edge of the cliff…but it really is just a stop-gap store of wealth, not a long-term one.
as Kevin says, tools, seeds, cows, etc., are the only things with long-term REAL value
NYMEX to raise gold futures margins Monday