Gold Feb 11 2013
Weekly bull/bear pivot zone=1672-1676 (ideal 1672)
Weekly bull/bear pivot zone=1672-1676 (ideal 1672)
Daily bull/bear pivot zone=1666-1670 (ideal 1670)
Daily support = 1654-1660-1665
The gold markets did very little during the last five sessions, essentially closing unchanged. You can see that the market tried to rally during the week, but could not hang onto the gains, and in turn formed a candle that looks slightly like a shooting star. However, we see quite a bit of support at the $1640 level, and as a result we feel that this market is simply playing tug of war.
However, it appears that the ECB entered the “currency war” over the last week, as the Chairman suggested that the value of the Euro is starting to hurt their economy. If that’s the case, we now have the Federal Reserve, the Bank of Japan, and now the European Central Bank all looking to devalue their currencies. In that situation, it’s very difficult to think that gold will fall over the long-term.
It is because of that type of thinking that we do not sell gold at all. In fact, we hold it in its physical form, as well as the ETF form in the very popular GLD. These are two ways in which we hold onto gold for the long-term. However, the futures market gives us the ability to boost our returns with leverage when it is apparent that the markets going higher. Unfortunately, this is not one of these times, but we are along gold in the more traditional sense. Because of this, we simply don’t short it as its trading against ourselves.
We think that if the $1700 level finally gets broken above, this market could really start to take off. We have no doubts that the printing by central banks around the world should continue to drive demand for gold over the long-term, and therefore we are very patient with our holdings. As a result, we fully expect to see $1800 sometime this year, and possibly even as high as $1900 sometime this summer. All things being equal, we are always along gold; it’s now just a matter of how long and whether or not it’s involving futures.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
