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August 5, 2011 / Hal (GT)

Gold takes off to new high as DOW plummets and then…


Gold pulls back. Which really was to be expected. The down turn in gold looked typical to me for when new highs are set in the metal and normal in the sense of traders who use the metal as safety hedge when their stock trades go south. Hence cashing out of gold which is winning to cover loses and try to buy the dips.

Right now, the app, is showing gold at what I am of the opinion is a good area for setting in a floor, $1,656.90. Silver is $38.34 and I am not as happy with its performance. The following video may give some clues as to that because Sprott talks about how he thinks that silver is being manipulated to affect gold. I came across it because of a tweet from @barbaric_relic.

Something interesting to note as I look at the graph and spot prices of platinum and gold is how close that they are at the moment. They are only $63.80 apart and I expect that there is a possibility of that narrowing and finally crossing at some point in the next month. I could be wrong, but I’ve seen it before. Time will tell.

Fannie Mae seeks $5.1 billion more from taxpayers <- What do we look like? Your sugar daddy?

Food stamp use rises to record 45.8 million <- You have to see the accompanying graph.

Bulletin: Market Update from Peter Grandich <- there’s a link here to a podcast interview with Peter as he’s in London at the GATA meeting. Talks about yesterday. Good listen. “Gold and silver, pause that refreshes.”

I’m not sure where I came across this link. May have been someone on twitter but I failed to note it: Faber: Brace for a Global ‘Reboot’ and a War.

 Rickards – Who “Really” Controls The Gold <- Great history lesson.

Rick Rule – Despite Metals Smash, Expect Gold Rally to Continue <- I agree, but wouldn’t exactly refer to this as a metals smash. Gold was what around $35-$37 off its high of yesterday. The DOW got smashed. I’ve yet to see the $50 to $100 swings in gold that we’ve seen in the past. In part this could be because the big banks that short it and silver have lost some of their control.

The Third Phase In This Gold Bull Market <- Words of wisdom from Jim Sinclair.

Dunkin’ Donuts, Baskin-Robbins eye price increases <- also from Jim Sinclair. I like what the emailer had to say. Reminds me of Joe the Plumber.

Extreme Volatility in Gold as market digests rumors and risk aversion trades <- Another you should read, Dan Norcini.

“….part of the reason it [gold] was hit so hard at one point in the trading session had to do with unsubstantiated rumors that were floating around that the CME Group was going to be hiking margin requirements on their gold futures contracts.”

Safe haven buying boosts gold as markets slump <- People know what is solid and what is not [fiat].

Gold Reverses but Momentum Remains Strong. <- Yeppers.

J P Morgan Says “We Love Gold” <- What’cha talking about Willis?

Wait for the Panic, Then Buy

Downside volatility excited me: I love being a buyer into a panic.

What will be the price of gold on Dec 31?

Learning And Labor <- Good charts.

“…when you express the level the Dow index using the dollar price of gold, the Dow is down a whopping 28.6%.”

The Looting Of America: The Federal Reserve Made $16 Trillion In Secret Loans To Their Bankster Friends And The Media Is Ignoring The Eye-Popping Corruption That Has Been Uncovered

Don’t Bet On The Fed <- Interesting.

Okay well, I think that may be it till next week for me. Take care and keep an eye on where it closes today and where it begins on Sunday night in the Asian markets.


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