If we wanted to see whether or not those dip buyers were going to make their appearance in Asia, we got our answer.
The market dipped down to as low as $1308 and then moved quickly higher last evening with the buying continuing at a steady pace into Europe and New York.
Late this afternoon, and I am still unclear as to what the exact reason for the sharp selloff was, the US Dollar came under rather intense selling pressure, in spite of the fact that interest rates had been rising for most of the session. The Yen, the Euro, the Aussie, the Swissie, it did not matter - all of them shot upward in a fashion that was reminiscent of their performance that day earlier this month when Bernanke gave his now famous comment about QE continuing "for the foreseeable future". I must have missed some comment from some Fed governor or something but either way, something lit a fire under the Dollar bears.
As the Dollar imploded lower, gold caught another gust of wind and jumped with the result that the metal put in a $30 range from top to bottom and now goes into Asian trade with upside momentum, the exact opposite of yesterday's status! As I said yesterday:
"She loves me; She loves me not; She loves me; She loves me not".
Here we go again.
While the HUI was up, it's performance was rather lackluster given the sharp thrust higher in the metal.
Now we face the Friday Follies once more to see whether or not gold gets its usual beating on that day or if it can mount a counter rally. For the metal to generate some further upside, $1350 needs to be cleared.
By the way, take a look at the following 2 hour composite chart I put together comparing the price action in gold to that of the US Dollar... Can you say the words. " MIRROR IMAGE IN REVERSE"?
Note that as the Dollar gets whalloped, gold shoots higher. Gold is back to acting as the ANTI-DOLLAR.
thanks dan....i agree that the shares did nto match the metal on teh upside.....and then i dont know why there was some last minute rally...i thought gold was turning lower after it moved up and began fading around 1330...but then some last minute gold boost..i sold just before that...but i was suprised that the mining shares litertally didnt react and almost fell despite the last minute 5+ dollar rally in gold...but still, a good day...tend still looks up and its up to the asians to breach 1350 to go up to 1370 i believe...my levels are 1300-, 1320, 1333/5, 1350, 1370+ ... i think volume is still higher for the bulls. anyway, twas a nice day!
ReplyDeleteas usual, things do not add up and make sense, at least not to yours truly; however, I do think that there may be an accident coming over the weekend; gold seems to act better than silver and gold, indicating a risk off situation; as for the infamous KWN site, I just got off the phone with my girlfriend's uncle who is a coin dealer in Saigon and he wants to know how much gold he can sell to Keith Barron @ $1534. What a sad, sad claim, but maybe he is trying to 1 up the great von Greyerz; that is all from Sparks, steve
ReplyDeleteDollar will tumble when focus returns to the bankrupt state of US finances.
ReplyDeleteDollar may also start to tarnish at the risk of a wider war in the Middle East between the heroic Iranians, whose influence is sweeping the region, against the failing US-backed infidels, especially the widely-hated Saudi royals.
Time is running out for the petrodollar. It will be all over within 2-3 years. The brilliant Chinese-Russian-Iranian alliance has the upper hand and will force checkmate on the US in the region as the US puppets fall. Then the petrodollar will immediately collapse, and simultaneously it will be curtains for the Dollar and the US.
Mirror image in reverse = Gold is back to acting as the ANTI-DOLLAR. Wow I am absolutely speechless.
ReplyDeleteAnd the Fed is the ANTI-GOLD... Death to Central Banks in their present form.
ReplyDeleteCentral banks were intended to create banking stability; not financial instability and manipulation.
Daily chart for gold.
ReplyDeleteI put a circle where all the résistances (ma50, median of Andrews, top of downward channel, Fibonacci retracement level...) in the 1330-1350 area finally stopped the progression of gold prices.
Unfortunately, we didn't get back down deep enough towards the ema15, so I didn't have a chance to go long before the bounce up yesterday. Never mind.
http://s21.postimg.org/8makjig93/gld.jpg