As I have said before, volatility has returned to the gold/silver market and the general attitude is still SELL for the PMs right. $10 up or down is almost a daily occurance now. As long as 780 on gold and 13.80 on silver holds on a closing basis, then I personally plan to stay long for much higher prices in the near future...
February Gold (ZGG8)
- Thread starter Realist
- Start date
As I have said before, volatility has returned to the gold/silver market and the general attitude is still SELL for the PMs right. $10 up or down is almost a daily occurance now. As long as 780 on gold and 13.80 on silver holds on a closing basis, then I personally plan to stay long for much higher prices in the near future...
Even though the XEU and the GBP are down significantly today against the Greenback, gold is only down a few bucks and is currently trading at 796.10 cash, exactly the same spot where I entered this position last week. A few more days of grinding action and then up imo.. Today several funds house are looking at gold as the XEU and GBP come off their highs, then gold in dollars looks much more attractive.
I also entered into a position in GDX today as I have a price target of 75-80 on this ETF by late-May of 2008. The XAU/Gold ratio is nearly at the same level as it was in the end of September which means that the gold shares are undervalued relative to the current gold price. The 0.57 zone is typical of the low end of the range while it is at 0.58 right now. Risk is low, reward is high in both the shares and metal imo. These are the trades that I pay attention to...
I also entered into a position in GDX today as I have a price target of 75-80 on this ETF by late-May of 2008. The XAU/Gold ratio is nearly at the same level as it was in the end of September which means that the gold shares are undervalued relative to the current gold price. The 0.57 zone is typical of the low end of the range while it is at 0.58 right now. Risk is low, reward is high in both the shares and metal imo. These are the trades that I pay attention to...
As of 10AM NY time, Comex gold is back over 800 and silver over 14.40. Let's see if we can close the week out at or near these levels for a positive weekly close. I now feel like I am talking to myself as it is obvious that the interest level in the metals has disappeared dramatically. This is an ideal bullish scenario from a contrary standpoint. The less number of traders that strap themselves to the bull, the better! I also believe that the XAU/HUI is about to takeoff for the 2nd stage of gains as the broader market looks to resume its bullish posture...
I like your posts keep them coming. I think gold goes higher next week after the fed rate cuts. 815 - 820. I'm long two gold mining stocks since early Sep. I'm a newbie when it comes to following metals, but I am slowly becoming addicted. I'm starting to think about trying the futures market. :eek:
IMO, the powers that be are doing their best to push down gold prior to the rate cuts so it doesn't get so much higher afterwards...
I agree. I have been following the gold action too. With two central banks cutting this week, and the FED expected to cut next week, I would expect Gold to go higher. I would sooner hold gold than any paper. I just cant understand why gol isnt following this theory. Maybe it will. Timing is important in this metal, like posters have mentioned before.
Another element that I believe will provide additional fuel to gold and silver is Copper which appears to be putting in another major bottom here. The next wave up appears to have some very good upside potential and the gains in copper should spill over into the gold and silver rings as well. I would not underestimate the upside potential for the metals in the months ahead...
So far my entry into GDX yesterday looks good. My read into the gold shares is that a major upside move is imminent. Likely as soon as tomorrow or early next week. This would likely occur on the back of a major upside break in gold and silver. By major I mean a NY close back over 820-830 and 14.60-80 for silver. I 'll be looking to double up on GDX once the PMO/MACD turns back to +pos...
