At this point in the game I have little concern for the price of gold as it’s trading almost exactly in tandem with the Japanese Yen ( JPY ) – both functioning as obvious “safe havens”.
These assets obviously gain momentum when “risk comes off” and considering that markets are now re testing the near term highs – what should one expect? ( insert lightbulb above head here )
The average investor, caught in the headlights of the main stream media and The Fed is certainly not “seeking safety” here as of this morning
Appreciate that nearly everything I track is stretched to extremes right now and rightfully so as…we are so very close to one of the largest turns this market will have seen in a very long time.
Why would gold be any different? A couple bucks here and a couple bucks there – not to worry.
These low volume days ( some of the lowest volume days of the year ) are legendary for getting people excited / worried as prices in “all assets” swing to extremes, washing out weak hands, luring in new buyers etc…
It’s always this way before a major turn in markets as the boys at your local brokerage / bank take the opportunity to push prices “as far in their favor as possible” before dumping.
September has everyone back in their cubicles. Likely back in their cubicles selling stocks and buying gold.
Gold is good – just not particularly “speedy” here at the moment.
Gold is good and belongs in any long term portfolio. But from a trading standpoint, no point in owning here, the risks are clearly to the downside. It can be safely bought on a hold of the June $1,240 lows and then a move back over $1,340, which would beak the 12 month trading range and show us the bear market has ended.
Nice posts Kong.
Right on Bob – thanks for the good word.
I’ve got my little portfolio of miners from some weeks ago, and will more or less just leave things alone regardless.
Tough for people considering “gold as a trade” here.
Me? I like it. I’m keepin it.
Miners have looked great…relative strength (to bullion) likely foretelling a major trend change?
Little troopers hanging in there these days. Looking good….slow – but good.
I’ve got EXK, MUX, IAG , GPL and LSG.
Perhaps something nice under the tree come X-mas time!
Greetings Kong it’s been a while!
Would you say this market has still been some tough sledding as of late? I find myself demonstrating yet more patience to wait for set ups that fit my eye. Yes there have been a FEW but it’s been boring as hell to me. The frustration continues on my end, what about you?
Completely frustrating Rob.
Not so much in the sense of “what’s happening” but more so in that……I’ve had far fewer trading opportunities than usual.
Forex markets have been deader than a doornail for the past 6 months so…..we can’t really do much about that.
Years of experience has me just “wait it out” but yes…..it’s frustrating for sure…and I imagine even moreso for one that is eager to learn / participate.
You’ll see a “straight stretch” here soon…and can look back on this as something you’ve learned from.
We can’t “make these markets move” but can only “trade what we see”….and in this case – 6 months running now…we haven’t seen much.
A very difficult time no question but…..great feather in the cap to have come thru it.
Kong, FX may be dead but wouldn’t you say you have a pretty straight forward trend staring in front of you? Long USD all across can go no wrong and is now the big trend.
Its super stretched here now – USD.
Check out charts of GBP/USD for example and consider how much further lower can it go without a bounce after like 7 weeks of selling?
I’m short USD now with small orders looking to buy in weeks ahead at lower levels.
Fed and U.S Gov must be shitting bricks with USD on the move higher as for every penny higher….the debt servicing just grows and grows.
Keep in mind….The Fed and U.S Gov “need” a weak USD to keep the ponzi alive so…..approach USD related trades with extreme caution here.