Does gold need a breather?

[mastertrader12]

it is best not to put all your eggs in one baskets.

 

[peilthetraveler]

Quote from ElTrader:

Note: It's funny how the world of finance has such a biological terminology and how the market is talked about like it had feelings. "The market has been scared", "gold needs a breather", "the market is recovering after a severe shock" ect. It's almost like we're talking about a mythological monster of some sort.

It does have feelings. The "market" is a combination of millions of people and their emotions. If people get scared that means the market was scared.

 

[ElTrader]

That's a bit naive, isn't it? The market is mostly people more or less calculating their next move, not so much feeling what's right. During crisis times feelings can be more involved, but still not as much as stated above. People don't sell gold in huge sums because of fealing a bit insecure.

 

[S2007S]

Quote from S2007S:

I'm extremely BULLISH on gold, but as the trade becomes more overcrowded its looking more like the beginning of a small bubble, I have no position in gold at the moment, just like any trade that moves in one direction for too long it always becomes overcrowded and eventually ends with a correction. This trade is eventually going to break, when it does of course it wont be pretty. Oil went from $147 to $30, at the time it was trading at an even $100 if someone said it was going to run 50% higher you would have thought hmmmmm.... but to anyone saying oil was going to drop over $100 a barrel to $30 after it peaked would be thought of as a complete fool.

If anyone wants to play the short side of Gold I would recommend

GLL currently trading at $9.23

If you want to short Silver

ZSL currently trading at $3.96

GLL @ $10.03 +8.3%

ZSL @ $4.66 went as high as $4.79

17%+ gain


Think you might be able to grab a tiny amount of profit in these, but I think in the short term these could head lower as gold and silver start to head higher after this recent sell off.

 

[ElTrader]

Investing and gold and silver for short term profit is not really worth the trouble. Not much money to gain but a lot of time worrying.

 

[krazykarl]

it only needs a breather if the run-up is due to speculation. In gold's case it's because of how the commodity is valued in relation to currency. Short answer: no. There will be profit-taking as people get scared but the medium-term trend is in-tact. Look for a reversal when the USD downward trend reverses.