Will it make any difference to gold and silver whichever of these appalling presidential candidates gets elected to govern what still remains the world’s most powerful nation? Obama has accelerated the decline in the nation’s superpower capability, arguably Bill Clinton’s legacy, and the erosion is set to continue with his wife in office but would […]
There is no traditional way to play the gold market any more. It is full of contradictions. Let’s start with the fundamentals.
If you are among the increasing many that are losing faith in fiat currencies such as the US dollar, the Euro or the GB Pound and have some cash stashed in a bank, you have to be thinking of the alternative ways of preserving your wealth.
Since quantitative easing became Chairman of the US Ben Bernanke’s long term policy the US and other western stock markets have prospered, with the dark days of 2008 now almost giving way to the highs experienced in 2007 just before the bust.
This indicates that a growing number of investors are gambling on a continuation of this easy money flow encouraging stocks to rise across the board with scant attention being paid to the nuts and bolts of a businesses solid growth prospects.
Gold hangs around the $1600 an ounce level for yet another day. Just as it looks like lifting off so it loses any impetus and drops back. It is suffering from the summer blues just as it has for so many years.
According to a strong rumour that we are inclined to believe, an “instant” sell order for nearly thirty metric tonnes of gold was traded on New York’s Comex exchange last Wednesday.
In European trading this morning, spot gold reached $1762 an oz, its highest level in 11 weeks before plummeting to $1738 an oz after New York opened. Stronger than expected jobs figures saw the dollar improve against the major currencies setting gold back while stocks benefited.
After hitting $1750 an oz earlier today the yellow metal fell back to $1741 before forming an ‘upside down head and shoulders’ bullish pattern that pushed the price back to $1750. It now remains to be seen whether this double top formation will signal another pull back, as they often do, or whether this price will act as a serious resistance level in the short term.