What does this mean? Well, depends on your position...if you've been saving up and holding out for the big spot drop, it's probably good news for you. If you already own and have no intention of buying gold specifically on the big drops, then it should mean nothing to you unless for some reason you are forced to sell gold during the consolidation. Long term (whatever that means these days) spot is probably quietly courting the bull... http://seekingalpha.com/article/2995726-gold-could-lose-a-crucial-support-level?ifp=0 .
Just paper ETF gold price. Stopped watching it a long time ago. You won't gain anything whatsoever from watching its price move around. What wisdom do you think you can honestly gain?
Excuse my yelling . but PAPER GOLD PRICE IS PHYSICAL GOLD PRICE!!!!!!. None of the people i know that whinge on and on and on about "it's only the paper price that is dropping" have any skin in the game and are on the bones of their knees anyhow. This is just a a view used by the gold and silver pumpers to sell more product.
Absolutely agree, wait patiently for gold to break below 1130, silver below 15. I plan to order some ASE @17.5 each.
I think gold will test US$1130 this week following the FOMC. I think they will suggest they will increase rates soon.
But, for example, Is anyone here buying or selling an ounce of gold bullion anywhere close to $1150 US?
A fed rate hike absolutely destroys a whole bunch of already marginal currencies that could start a shocking chain shit sneeze all over the place. The Dow dropped 300+ points in the rumour of it happening. If they do it the DXY goes to god knows what mad level and smashes US exports and profits for tech companies overseas operations. They're dammed if they do and dammed if they don't. It's not a good situation. The worst part is that they obviously want to (but can't right now) so they will come out with some more "impending" language hinting they will do it soon which will be at least half as bad as if they did it. Markets will react almost as if they did raise rates, apparently pricing in the coming rise, only to go full blown retard again when they actually do raise rates. How many times have we read that a rate rise is priced into gold or oil or the DJ? I know I've heard it a lot and yet somehow this already priced in factor will smash a whole range of assets/commodities/investments when it happens. They should have done it months ago before all the currency devaluations got mad, now the rate rise has been priced in about 5 times and hasn't even happened! Every time the subject comes up again it gets re-priced in. I've heard it said that once it happens things will actually get better for metals because the market doesn't like uncertainty, which is true, but everything except the dollar drops like a stone if they announce it and if gold cracks a whole bunch of support levels when it happens then the TA guys all jump out and you have a serious run on a whole bunch of things all over a 0.25% rate hike. Either the market isn't acting rationally or the whole world economy is propped up by the current emergency fed window rate (probably both). It doesn't speak highly of the state of equities that positive economic news like good employment figures cause a mini crash because it might mean a fractional increase from near 0 interest rates. I don't like it gents, not at all. Anyone want to have a pool to guess what aud denominated gold will be 48 hours after the hike when it eventually happens? Go go gadget 110 DXY.
