Wednesday, Apr 23, 2008
Gold not so overbought now
Safe Haven: Encouraging Action for Gold Bulls
"Now, this correction could go on awhile longer and I don't consider a downside target between $800-$850 to be out of the question, but we may only end up seeing a time (sideways) correction in gold much without much more downside in terms of price."
Posted by sold 2 rent 1 @ 11:50 AM (544 views) Add Comment
12 Comments
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1. sold 2 rent 1 said...
Gold is now only $100 above its 200 (daily moving average) dma.
This is down from being nearly $250 over its 200 dma only a few weeks ago.
890-910 price range is a good time to buy over the next 1-2 weeks
It might go lower but who would want to miss the high speed train to $1500
2. techieman said...
s2r1 - the "problem" at the moment is that Gold isnt respoinding to the weakening of the greenback. Before, that was (or maybe was perceived to be) a main driver. So why is this the case? Could it be that the gold market "thinks" the $ is topping out and that the $ may be about to turn? If thats the case then this quote re the downside sounds sensible to me. I think that on a fundamental basis the fed says "right we have done some agressive cutting lets wait and see what happens re the stimulus". If they see inflationary pressures first (likely) before deflationary ones then what price some "fine tuning" of rates upwards?
3. jamonit said...
http://www.whiskeyandgunpowder.com/Archives/2008/20080421.html
4. Neo-serf said...
s2r1 - Could you give any other thoughts on this - I'm thinking of buying Gold and my instinct says now seems to be the right time.
5. sold 2 rent 1 said...
TM,
Gold is in stage 2 of this bull run from 2001.
Stage 1 was all about dollar devaluation.
Stage 2, which started with the upleg peaking in May 2006, is about Global Investment Demand
Read: Gold Bulls’ Three Stages
http://www.zealllc.com/2004/au3stage.htm
Put another way, if all fiat currencies are printing money at great speed then the USD will not devalue as fast or or even reverse its decline.
Don't see $1500 as gold rising in price but all fiat currencies devaluaing together against "real money" - GOLD
If we don't buy gold at these cheap prices then George "filthy" Soros and his grubby mates will.
6. Goldmercury said...
whys this on the fornt page, I though anything gold went to GEI...
7. sold 2 rent 1 said...
8. techieman said...
god i love those charts S2R1 - i am not sure we are at 3, basically believe we are at 2 still and therefore will have some falls first. Still long term bullish kinda so subcribe to your view.
9. techieman said...
silly me - meant 1! Getting confus-ed.
10. Agentimmo said...
1kg of gold has risen about 10% since the start of the year, when priced in euros.
Good, but hardly stunning. The rising price in dollars makes it look exciting, but us mere mortals have to buy in local currency....which for me is the euro. I can get 5% risk free by placing it in the bank. Not saying the gold bulls are wrong, just that the risks are quite high for the ordinary Joe in the street if he wants to get into the yellow stuff.............
11. sold 2 rent 1 said...
Neo-serf,
I am adding to my gold.
The "world crisis" is about to go to the next level
12. techieman said...
s2r1 - careful! Dont corner the market, "they asked me what was the best market to get into? I said silver but i didnt expect them to buy it all!!!"