| Author |
 Topic  |
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 11/30/2007 : 17:46:49
|
I decided to look at historical gold charts from Kitco.com.
You must be logged in to see this link.
While I am not a chartist and I value the reasons behind the price movements as being more important than the movements on the charts, I do realize charts are a useful tool, but not the only tool an investor should consider when investing.
For the years 2004 to 2006, there is a drop off in gold's price in the months of November or December. This year is no different with the sharp decline in gold's price.
As to why this has happened in the previous years is anyone's guess, though by accepting that a drop off in gold prices occurs in the last two months of the year makes for a buying opportunity when the price is depressed.
Something to consider,
could there be some manipulation going on in the commodity markets to keep gold under $850 to prevent a future run on gold?
Once that magic number is reached, there will be a great deal of talk on main street on how well gold has done and might do in the future, and once main street begins to notice gold, the main streeters will begin to ignore Wall Street.
Once that golden number is breached, then gold's price could go as high as any figure you could guess.
Of course, this is pure conjecture on my part, I have no way to say if this is the fact, though it is something to ponder at your leisure.
|
|
|
n/a
deleted
192 Posts |
Posted - 11/30/2007 : 18:57:49
|
There was strong resstence at the 500 Euro Mark.
There will be resistence at the USD 1000 Mark also.
Let us not however become Euro / Dollar / Western centric in our attempts at understanding.
It is well established that wedding season in India plays a big role in the seasonal gold market.
I assume that there are other things like Ramadan, Chinese Zodiac, etc. etc. that play important roles.
$850 may be a milestone, who knows? but my opinion is that the season as described by Penn above is more important than that particular number.
I also feel like I am detecting a inverse correlation between the US Dollar Index and the PMs (gold).
The only place that I know to look for this is at
You must be logged in to see this link.
at the top of this page are two kitco generated charts, on the left is gold in USD and on the right is the USD Index.
Today for example, the dollar is up and gold is down.
I don't have a chart that compares them over time, but I can say that in general, when I go there and look at those two side by side, I see an inverse correlation every time. |
.....................................................................................................................
The market can stay irrational longer than you can stay solvent.
John Maynard Keynes,
English economist (1883 - 1946)
|
Edited by - n/a on 11/30/2007 19:05:12 |
 |
|
| |
Topic |
|
|
|
From Kitco Charts
Forum Locked
