Gold is driven by consumer confidence and expectation. Consumer confidence is up given Trump, which drives prices down. Expectation is 100% for a rates rise (in econometrics nothing is 100% so this should ring the same alarm bells the polls stating 98.8% chance of Hillary being president). If rates do rise, gold will go down further. If they don't there will be a shock and a rebound - not too much given increased consumer confidence. If rates do rise and Trump starts doing any of the things he has promised, the economy won't cope and markets will drop and confidence will disappear. Gold will rebound by a lot. If rates do rise, and Trump starts doing things like running the country like a business, gold will go down and stay down. There is just one thing I'd point out this point - oil is going up and precious metals normally track oil.... but they are doing the opposite now. Gold and silver will go up, maybe mid next year, maybe in 5 years' time... maybe 20.... It may not be the best investment and it may not ever return positive returns. That's why you have to diversify.
O.k. I will go with leon again.....I think we are seeing noise at the moment.....a retest of u.s. dollar index back to the 100 will see a temp rise in gold... message for leon.....take profits at the dollar index 100 and then go short.....big time.
GLD @ 112.6.....If gold moves up a little he can be back in the money. It will not be as profitable a trade as last time but a little money can be made.
Now Nugget Hunter....you are going to blow a gasket if you take these posts too seriously. It's all a lot of fun for me. I am a millionaire in my own mind also..... As for Leon, well I don't really care if he invests or not.... I follow his predictions in much the same manner I follow a horse in the Melbourne Cup whose name tickles my fancy....the result of the race is irrelevant. It is simply a little distraction in my otherwise regular day. No more than that.
u.s dollar index just retested the 100 mark.....If I was leon I would be cutting and running right now. Gold to possibly test the $1000 mark very soon.
Just cut [email protected], took the loss. Fortunately I longed SLV @15.72 and closed @16.30; that helps to balance the budget a little bit.
Go long U.S. dollar...it is about the safest bet in the world, even if it does pull below the 100 again for a short time it will be brief.
