Gold on way Up?

[geoff01]

Gold Adds Another $30 An Ounce

(RTTNews) - Gold climbed again on Wednesday as traders continued to turn to the safety appeal amid lingering doubts over U.S. rescue plans. With the rally, the metal reached its best level in more than six months.

April gold closed at $944.50 an ounce, up $30.30 on the session. Earlier, prices reached as high as $949.00, its best level since July.

The metal has gained more than $50 in a two-day rally. Traders flocked to the hedge appeal of the precious metal since Tuesday after Treasury Secretary Timothy Geithner's speech was generally regarded as a flop, as he failed to provide enough details about the plan to restore credit flows.

nasdaq

[talkgold]

I do think it will break the recoerd fo $1003. After that though it's hard to tell where it will go. Note that the US is pumping trillians of dollars into the economy and so is the rest of the world. There will be inflation at some point which bodes well for gold. Having said this, Oil may be an even better investment. It's at an extremely low price right now, and once things turn around demand will explode, and with inflation, I could see prices 3 times as high within 2 years or so.

USO is an ETF you can buy on the stockmarket which tracks the oil price.

[contrarian]

Originally Posted by talkgold

I do think it will break the recoerd fo $1003. After that though it's hard to tell where it will go. Note that the US is pumping trillians of dollars into the economy and so is the rest of the world. There will be inflation at some point which bodes well for gold. Having said this, Oil may be an even better investment. It's at an extremely low price right now, and once things turn around demand will explode, and with inflation, I could see prices 3 times as high within 2 years or so.

USO is an ETF you can buy on the stockmarket which tracks the oil price.

Not that I want to get into analytical calls in public :-P

And although I certainly agree the fundmentals (gold wise) are there, I use a pretty old-school proprietary 'fair value' calculation trading gold, and based purely on the techs...
There's a fair value channel sitting between here (946.xx) 973.xx area where you could see some heavy sellers stepping in.
(I know I'm looking for a good setup personally ;-])

Although, as usual, that 'fair value' has to be decided as to whether it's better value for sellers or buyers.

If it turns out to be buyers, then yep, there's that tempting 1000-buck target which is serving as daily/weekly resitance.

If that goes, I agree, who knows... 2K an ounce?
Stranger things have happened ;-]

If it's better value for the sellers, personally, I'm looking to cover a little @ around 920.xx initially (if I get my selling price of course) and then probably 900-bucks or even lucky 8's (888) if the momentum holds.

So, I suppose what I'm getting at is, don't just buy blindly and if you must, then make sure you can take some pain with your stops on any pullbacks.

Good luck, Happy Trading.
Regards,
Contrarian

[okosh]

Originally Posted by contrarian

If that goes, I agree, who knows... 2K an ounce?
Stranger things have happened ;-]

In the next 18 months I expect gold to go even higher than 2K per ounce....

[contrarian]

Originally Posted by okosh

In the next 18 months I expect gold to go even higher than 2K per ounce....

Over a timeframe like that, with the fundies currently in play.
It's a probability, deffo.

Demand will rise, and not just market demand for 'safety sake'.
I mean production demand.

Incidents like the one you are currently experiencing alone can ramp it up with all the 'rebuilding of lots of things' work that is going to be required for a long time to come.

Gold goes into the production of very many things.

I just trade the bars though, so I'm looking for the swings.
I can't do the whole 'buy-and-hold' thing :-P

Regards,
Contrarian.

[geoff01]

Gold Tops $1,000, Highest Since March, as Global Equities Slide

Feb. 20 (Bloomberg) -- Gold surpassed $1,000 an ounce in New York for the first time in almost a year as investors, hurt by plunging stocks and a deepening recession, sought to protect their wealth.

Gold futures for April delivery rose $25.70, or 2.6 percent, to $1,002.20 an ounce on the New York Mercantile Exchange’s Comex division. Earlier the price touched $1,007.70, the highest since March 18. Gold, the only metal to advance in 2008, has rallied annually since 2000 and is up 13 percent this year.

Global stocks extended an eight-session slide, erasing 54 percent of their market value since the start of last year on concern that the economic slump may worsen and wipe out corporate earnings. Governments are lowering interest rates and spending trillions of dollars to combat the recession, spurring investors to buy bullion as a hedge against inflation. Demand has pushed gold holdings in exchange-traded funds to records.

“There’s a general fear of chaos in the financial system that’s weighing on markets across the globe,” said William O’Neill, partner at Logic Advisors in Upper Saddle River, New Jersey. “This is a perfect storm for gold and its flight-to- quality characteristic is coming through.”

Gold last topped $1,000 in March as interest-rate cuts by the Federal Reserve propelled the dollar to an all-time low against the euro in July. The metal reached a record $1,033.90 on March 17 before retreating to as low as $681 by October.

Analysts say the rally may continue as investors lose confidence in financial assets.

http://www.bloomberg.com/apps/news?p...er=commodities

[sanjay]

gold has slipped down a bit.. although nt mch bt i expct it to lose more cuz i wana invest some in it

[jmt17]

According to a blog I read, institutional gold investment is picking up; The Stock Research Portal, who is in “constant contact” with presidents of Canadian mining and energy companies, says that “In the past few weeks capital has freed up for what are perceived to be good (particularly ‘gold related’) precious metals companies.”

[Retired]

Institutional and investment demand is picking up. Some funds are now priced in gold, such as Osmium Capital http://www.telegraph.co.uk/finance/p...d-in-gold.html. Jewelry demand is down or flat in most countries, but overall global demand in up. The DOW gold ratio was 44 just a few years ago. Now it's about 7. I think we'll see 1:1 parity before this whole mess is over.

[jmt17]

“Microcap Speculator” on SeekingAlpha.com crows: “If the Fed is printing money, I’m buying junior gold miners.” The Stock Research Portal cautions, “Anyone who lacks both detailed fundamental knowledge of mining and the junior miners should either not buy them or should gain that fundamental knowledge before buying them.”