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« Finding Elusive Gold in This Market | Main | Gold-Prices.biz: Portfolio Update 23 January 2009 »
Friday
Jan232009

GOLD: Hits $900/oz!

Gold Chart 24 Jan 09

We have been looking for gold to make a higher high in recent articles and today we got our wish as gold popped up above the $900/oz mark and finally closed at $898.30 for a gain of $41.90 on the day. The Gold Bugs Index also joined in the fun when it added 25 points to close at 304.03.

As we can see from the above chart gold has pushed higher, which is great news for all of gold’s fans. We would now expect gold to rally to about the $930/oz level at which point the profit takers could well pull their cash out and go back to the sidelines. Also note on the chart that the MACD has formed a golden crossover. This is when the black line moves in an upward motion above the red line, this movement is usually a very good sign that gold is about to go higher, however, it does not work every time.

This chart depicts the lower highs that gold had formed and today it made a higher high by closing at $898.30:
G1

The US Dollar put in erratic performance trading as high as 86.6 but a late bout of selling dragged it down to close at 85.60. At one time in the New York session they were both heading north at a decent pace but the dollar failed to hold onto its gains. We could now be at the juncture where gold heads north regardless of the dollar which would be a terrific sign of strength for gold. Then, if the dollar resumes its trek to the basement, as we think it will, gold will move to much higher levels in comparison to the dollar. Also keep in mind that the value of gold is now close to, or above, it’s all time highs when compared with other currencies.



Finally a word from Jim Sinclair:

With all this bailout talk, another word is starting to make it into the vernacular...Inflation!!! Before the Geithner confirmation hearing, former Fed Chief Paul Volcker, who I like to call "the Real Maestro," gave a short testimony to vouch for tax dodging "Turbo" Tim Geithner. (He used Turbo Tax to do his returns.) The most newsworthy thing said were the few lines Volcker slipped in about his concern about inflation because of all the bailout money being created for the banks. No news organization I know of reported that little tidbit. Volcker's fear of inflation should have been the real headline for the hearing…

If we are in a deflationary period now and gold is performing well then what will gold do if this deflation is followed by inflation and just maybe hyperinflation?

Please give us your thoughts!

Have a sparkling weekend.

Stay tuned for updates in this fast moving market…

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.


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Reader Comments (7)

Gold is good for wealth preservation. Right now, in historical terms, gold is inflated because the time we live or, to put it in other words, gold price is reflecting the level of uncertainty in the economy right now. Thus, for the long-term view a price spike is an invitation for speculators and bad news for investors who want to find a safe-heaven.
¿What should we recommend? ¿speculate on fear or wealth preserv?

January 24, 2009 | Unregistered CommenterChimera

this is it for gold. dollar is going to 92, and gold to 550s, there is no way gold and dollar to rally at the same time, expect a big plunge next week

January 24, 2009 | Unregistered CommenterDi

Having some of the shiny stuff is great to 'touch or hold' when you start to feel depressed about the economy. :-)

January 24, 2009 | Unregistered Commenterfg

Di, You have been saying that gold is going to $550 for some time now - can you tell us just when you expect it to hit this figure please?

January 24, 2009 | Unregistered CommenterGold Prices

this march

January 24, 2009 | Unregistered CommenterDi

Thanks - we will keep an eye!

January 25, 2009 | Unregistered CommenterGold Prices

Howdy, I hope gold goes to 550 or even 500. You talk about a shortage of the shiny stuff ... WOW. I and the rest of the world will be standing in lines - BUYING! Then watch where the price goes.

January 25, 2009 | Unregistered CommenterTim Furgold

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