December Gold (GCZ7)

http://www.investmenttools.com/futures/metals/welcome_to_the_page_about_gold.htm

its just large specs planning for the next easing cycle. Look what happened with the previous easing cycle.

1) dollar decimation
2) commodity explosion

US dollar index


http://www.investmenttools.com/futu...lar_point___figure_chart__dollar_futures_.htm


the yen is the backbone of the dollar, look what the next easing cycle means for the yen, its counterintuitive, means BOJ and partners will shore up the dollar using yen sales. The larger the deviation against other currencies, the higher usdjpy rate has to go to shore up the dollar.


http://www.investmenttools.com/futures/forex/index.htm


commodity explosion...

http://www.investmenttools.com/futures/crb_index.htm


fed easing is a very powerful stimulus to equities.

http://www.investmenttools.com/equities/s_p_500__standard___poor_500_.htm
 
So far it appears that cash gold has closed over $700 for the 2nd day for both the London PM Fix and also for the NY cash gold close. This is very constructive moving forward as this would likely indicate that gold is more prone to move higher now than lower at this point. However, if a correction does ensue during the coming hours/days, then 693 looks to be the place for buying support to come in. 688 cash would come next however I think 690 will hold as long as the DX continues to trade under 80...
 
Quote from riaamaan:

It looks to me as if a pullback is coming. If so, I am a buyer.
More...

The RSI and CCI is clearly now in overbought regions where pullbacks are likely to occur. 688-693 region looks like solid support and anxious buyers are likely looking at those levels to either add or initiate new positions imo...
 
3rd day in a row with the London PM Fix putting in a 3rd higher close at 704.15. NY cash gold moving over 707 resistance to close at 712. Gold prices are now demonstrating extreme demand as the USDX looks set to continue lower. Even though fund interest is running fairly high right now, I believe that even more interest will come into the market once the May '06 high is breached at 730 cash. If we start to get 740 on GCZ, then we can start looking for prices at the January '80 contract high of 895... Very exciting times starting in the gold ring now. Stronger voices are starting to become more prevalent...
 
After doing a bit more research into the current situation, gold is now trading in a historic area. I am getting the feeling that we could be sitting on the verge of a major move here. Gold could actually demonstrate a "disconnection gap" of sorts in the coming days as these prices are starting to garner some serious attention now. Such a gap could come in the form of a $30-50 single session move upward in prices thereby disconnecting the 730 May '06 high print altogether imo...
 
Today marks the 4th day in a row that the London PM Fix has gold priced over $700. If we get a 6th day on Friday, then this will be a new historic record. This would likely entail that gold has entered into a new base at 700 and should propel prices much higher over the coming weeks/months. Today's correction down to 705 cash is welcomed as we have not seen any pullbacks in nearly 2 weeks. Good physical buying support was seen right at 705 today so let's see if we can close the week back over 710...
 
The chart for gold looks weird. I haven't seen a movement like this (basically a straight line above $700) since the big pop in 2006.

IMO the buying in the europe and asian markets is allowing people in the US markets to take profits without affecting the price much at all.

At the moment, gold does look oversold and I would like to see a retest of $700 before moving into the 735 area
 
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