Is There A Bright Side To The Week’s Gold Plunge?

Despite the slaughter on Wall Street this week as reality took center stage, spot gold ended up only $20 down during this period. Over the previous month, however, things have looked far from encouraging on the surface for gold bulls. Spot Gold has tumbled from over $1160 at its peak to Friday’s after hours close at $1066. “ Courage mes enfants” as Napoleon is supposed to have exhorted his elite guard at Waterloo, for we forecast a bright side to this months gold plunge. Read more

Gold Bulls – Are They In Retreat?

In the second week of January spot gold traded at a high of just over $1160 an ounce. Today, Feb 1st., less than three weeks later we are looking at early European trade of $1080, which is about as low as it has been this year. Does then mean that gold bulls are in retreat? We do not think so, in fact far from it! Read more

What Caused Golds Record Leap?

Rumours and facts combined caused gold to leap to a record high of $1043.50 an ounce yesterday quickly followed by hitting $1048 in today’s early European trading before falling back to $1041 at 13.25 Central European Time.

The rumour that the Gulf States are considering dropping the US Dollar for oil trading, and using a basket of currencies, including gold, together with no little encouragement from China and Russia, has gained some ground. Read more

Gold – Buy The Dip Today!

Gold has dropped $20 in a day and $30 in ten days. Not quite the mother of all dips but substantial nevertheless.

Has there been any fundamental change to the long-term outlook for the yellow metal? Not in our book, if anything the US economy and the dollar are sinking ever deeper into the mire. Read more

Gold Miners Profits Disappoint

Gold miners should be doing well. The price of oil falling back to an average around $60 a barrel from an all time high of $147 in mid 2008 has led to a significant lowering of the cost of production.

During the same period, for six of those months the gold price has been comfortably over $900 an ounce. This column has long been advocating the benefits of investing in gold miners, and, by the by, putting our money where our mouth is. Read more

How To Get Into Gold On The Cheap

Gold fell from $958.95 in London on Friday to $942 at midday in New York before regaining a little ground. The Fall continued in Asian trading on Monday and by the mid morning session in London the price had dropped down to $937 an ounce.

All this negative activity seems as usual based on a fall in the price of oil and a strengthening of the US dollar. Read more

Conflicting Messages From Gold Chart Analysts

Spot gold has stayed comfortably above the $955 an ounce level, previously resistance, but in the last week looking like support.

Conflicting messages are coming from the gold chart readers camp as analysts ply their trade in the hope that their choice of time frame, over bought, over sold, head and shoulders, reverse head and shoulders, triangular patterns, fibonacci, MacD etc. and the myriad of other mostly lagging indicators will guide them and their followers to bumper profits. Read more

How To Profit From The Gold/Silver Ratio

In the last week the gold / silver ratio has gone from above 71 to around 68, still historically high. At the same time the gold price has yo-yoed between a high of $959 and a low of below $927 an ounce before closing out on Friday at $954 an ounce.

While all this was happening silver was mirroring the performance of gold, with a slight delay, as the price of gold ebbed and flowed. Significantly though, at each daily close, silver’s gain or loss in percentage terms was always greater than its more expensive bedmate and this opens up opportunities to trade silver profitably. Read more

Gold Players Favour The Short Term

Spot gold started off the week a little over $910 an ounce and rose to $941 before settling down in the $936-938 range on Thursday and at Fridays mid morning European trading.

There were signs earlier in the week that fears of inflation were taking centre stage but that seems to have retreated to the back burner as gold players continue to favour the short-term game. Read more

Gold Drops To $929, Is This Just The Summer Doldrums?

Spot gold dropped sharply to $929 an ounce for a very brief period in European mid morning trading today before recovering to $930 but was still down $4.00 from the open.

Last week saw a drop of just over 0.4% for the period with silver leading the way down with a fall of 4.5%.

The question facing gold and silver market players is whether the last two weeks of gold trading in the $930-$940 range is simply a continuation of the metals historical summer doldrums or are there other factors that may be detrimental to the continuance of the long term bull trend that originated in 2005. Read more

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