Gold technical indicators

Comment

Comment by BullBearGirl on November 1, 2009 at 8:50am

Thanks for that Steven. I'll be watching for that double top to see what happens.

Comment by Steven Vincent on October 31, 2009 at 4:57pm

Gold rising on fears of systemic risk has been a great shorting opportunity in the past. Remember that it peaked in March 07 on the night of the Bear Stearns debacle. On Friday it was probably levitated on the rumors of CIT bankruptcy. Fear of commercial real estate "collapse" is the next big brick in the wall of worry. My current guess is that gold may double top in the 1063 area if it rises on the basis of systemic fear.

Comment by BullBearGirl on October 31, 2009 at 2:27pm

Thanks for your comments Michael. I have been watching the Kitco gold dealer's website at www.kitco.com and they have a new live banner showing how much the increase or decrease in gold price is due to the dollar and how much is due to investment demand.

It is very interesting that gold has been holding up so well during the recent upturn in the dollar/downturn in the market and I have been wondering if it will eventually start to go up out of panic if the market continues its decline. If it does look like it, I will be a gold buyer again. I have been thinking I should be mentioning this in my posts even as I post about the current decline in gold prices. Still, I have to wonder why the commercial hedgers are still shorting gold. I believe that group includes the miners. I've been paying attention to the weekly Commitment of Traders Report for the percentages of shorts to longs and the percentages of shorts keeps going up.

Comment by Michael J. Sykes on October 31, 2009 at 2:12pm

Economic recovery should help stocks and hurt gold. In the event of economic deterioration, however, some of the money leaving stocks will flow into gold IMO. However, the USD could rally even more strongly for a while, causing gold to decline a bit in terms of US dollars while rising against other currencies.