Gold Morning America!

We hope that you all had a great holiday while the rest of us carried on batting as usual. What looked like being a fairly flat day for gold bugs has turned into a pleasant surprise as the Hong Kong and Sydney stock markets trade gold up $18.00 to $960/oz as we write.

It will be interesting to see if this rally can maintain its momentum through the London session and roll into New York a lot higher than it closed there before the vacation. A real good price hike could send the shorters heading for the exit at some speed. Having to cover their positions could push gold even higher and hopefully take our precious metals stocks along for the ride putting a smile on our faces once again.

Typically in a 24-hour trading cycle gold performs well on every stock exchange except New York where with monotonous regularity it is beaten down.

Silver is also joining in the fun, up $0.24 at $13.91

Got a comment, then fire it in.
Stay tuned folks..

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Comments

[Quin]

Isn't it a bit overdone though? I know oscillators can stay overbought longer during bull moves, but this one has been going on for nearly a month already. IMHO gold is waaaay overdone and a pullback is due. Also commercials increased their shorts last week.

Also can you guys start doing some chart analysis again? You used to do this every time, but ever since gold became bearish you stopped. Why?

[Gold Prices]

Quin, This was meant to be a news flash - just to put a smile on your face - but point taken.

[P]

Bob

Gold is great !!!!!!!!!!!!!!!!!!!!

But Silver is shinier - !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

And Platinum = ohhhhhhhh I just love the way its going :-)

18% up in 2 months in these and a few selected mining stocks like AUY, AEM and SLW

Also watch MAM Manicouagan Minerals on the TSX - its gone up about 100% in the last few weeks

They could really go very intertesting results

Regards

[de Graaf]

Quin,

I see that you still 'believe' or better 'have faith in' technical chart analysis in a market situation where technical analysis is of the charts, so to say.

As you should know, technical analysis is for short term speculative investments in 'normal' market conditions. And all of the factors involved are being battered right now. The financial system is simply on the brink of collapse. It needs a severe overhaul and thats whats going to happen. Not a technical chart that can predict this change or the behaviour of stocks and indexes...

Its time for some people to start reading several views of highly rated economists and form their own image of circumstances. Because if people like Quin still believe in technical analyses than you are hoping to be a professional money maker. And the matter of the fact is...they don't see the light either anymore. Anyone who tells you different, is based on old principles that don't count anymore!

[Quin]

de Graaf,

I agree with you, but I based that comment purely on a contrarian point of view using oscillators as a backup. These things tell you the rate of people coming in and leaving a market. And a few, if not all, are saying that allot of people are already in.

Those who hold physical positions aren't likely to sell, but those holding paper positions (the vast majority) at some point are going to take profits.

Everyone, including banks (like GS (??!!)) are advising people to get into PM's. That fact alone should be a warning sign.

I'm satisfied with my position right now and I think other early buyers are too. But with every ultra bull already in the market, who is left to push the price higher?.

Don't get me wrong Graaf, I hate reading bearish PM articles/posts too, but I like keeping a open mind and not be too biased.

Also which economists in YOUR view are highly rated? Cause I don't think allot of people would consider Schiff a highly rated economist.
I follow Schiff, Celente, Martenson, Casey and few others.

[de Graaf]

Quin,
Its a good thing you keep an open mind. Thats how I approach things also.
When people tend to lean towards the boom side, I put out my contrarian thoughts and when people tend to lean out to the gloom side of the equation, I sprout off my other views and arguments.

Anyway, my fav. economists differ. But mainly; Casey, Roubini, Schiff (basic logic of his is perfect) and other advisors like Middelkoop (Dutch) and Rogers etc.

I'm not bound to one person. I tend to direct my own sense of logic and use their information to my ability. I also listen to people that are not with my reasoning. Never fail to listen to your critics.

brgds,

[Quin]

Also, again from a TA point of view, the DJIA closed at a multiple year low for a second week in a row. And outside a popular technical pattern.
I wouldn't be surprised to see a MASSIVE sell off happening the coming week or two and the same thing happening like last time. That is too sell commodities to cover other positions.

Now it could be that this time PM's are left out because of their safe haven status but the possibility is there.