Why Gold has to go down...

Quote from Subdude:

Sorry, but you're wrong - inflation won't be an issue in any of the developed countries experiencing the current downturn for quite some time. When every news outlet including Bloomberg and CNBC is telling you to buy gold, you know the train has already departed and pretty soon the herd will stampede back.
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Exactly.
 
I have heard of the dow/gold ratio but must admit I am not sure how it works. Long term gold will go up....but right now, with the COT numbers about 200K, an ascending wedge, consumer sentiment thru the roof, gold needs a healthy pull back.
 
with half of the S&P 500 companies having junk bond status, it's not too big of a reach to believe a 2 or 3 to 1 ratio.

aren't 6 - 8 DOW companies in technical insolvency? somewhere I saw that
 
Quote from sumosam:

I have heard of the dow/gold ratio but must admit I am not sure how it works. Long term gold will go up....but right now, with the COT numbers about 200K, an ascending wedge, consumer sentiment thru the roof, gold needs a healthy pull back.
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You guys are all missing the point on gold. It is about Europe. The buying is mostly in the Europe session. If it weren't for Europe and its satellite currencies collapsing, gold and silver wouldn't be moving like this.

http://www.telegraph.co.uk/finance/...t-Europe-will-lead-to-worldwide-meltdown.html

This market has nothing to do with technicals or speculation. Gold will go down when these satellite euro currencies and their respective banks recover.

Keep holding your breath. This is the fundamental reason for the decoupling with the US$ as of late.. Just a tell.

Also is probably a good explanation why miner stocks are also lousy on a relative basis lately... If it were a function of US$ primary weakness, I would think the gold miners might perform better.
 
Quote from scriabinop23:

You guys are all missing the point on gold. It is about Europe. The buying is mostly in the Europe session. If it weren't for Europe and its satellite currencies collapsing, gold and silver wouldn't be moving like this.

http://www.telegraph.co.uk/finance/...t-Europe-will-lead-to-worldwide-meltdown.html

This market has nothing to do with technicals or speculation. Gold will go down when these satellite euro currencies and their respective banks recover.

Keep holding your breath. This is the fundamental reason for the decoupling with the US$ as of late.. Just a tell.

Also is probably a good explanation why miner stocks are also lousy on a relative basis lately... If it were a function of US$ primary weakness, I would think the gold miners might perform better.
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don't make sense cat...then there should be a sell-off in the US session...hmmm
 
Its a GLOBAL game guys.....who in the hell cares who is the BUYERS of GOLD (BTW, Russia has been a big buyer lately too)......the FACT is there are buyers, and LOTS of them! :cool:

So ENJOY the ride! :eek:
 
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