The Definitive GOLD's Near-Term Outlook Thread

Mr. Fri

Check out this thread:

http://www.chrismartenson.com/martensoninsider/severe-market-dislocation?page=4#new

Sorry, I'm not a member so I can't see it.  Can you tell me the basics?  The markets and dollar index were mixed/flat today but gold shot up.  I didn't see any breaking news so I'm at a loss as to why.

Larry,

Basically the discussion on that thread has not concluded anything. There is no definitive explanation as to why gold, and silver now, have diverged from the dollar and other assets. Lots of speculation, from the position of Jupiter and Mayan calendar LOL, to India's recent purchase from the IMF, to the suspicion that some gold bars are fakes, to Goldman Sachs manipulation. Nothing really worth repeating.

The spike in silver has me think that a significant stock market rally is dead ahead, but who knows.

Would someone care to comment on whether today is a good day to buy gold?  Many thanks.

If you're going to use gold as a hedge against collapse (either economic, societal or currency), then any day is a good day to buy gold.  

If you're thinking to make money investing in gold, then IMO you'd better wait a bit and see if it pops down a tad.  Unless you have reason to believe that it's just gonna go up up up (in which case you probably wouldn't be asking this question).

Viva -- Sager

Gold-- A Contrarian View

I wanted to take a look this morning at Gold, above is a continuous Gold chart, I know about the head and shoulders bottom, the wedge that it broke out from, but these things are in the past.
One of my favorite indicators is the RSI. If you look closely at the chart you will see three(3)
peaks above the 70 overbought reading(I know there are actually many more prints above 70
it's the cluster's that I look at). On this third time the Gold market has made a new print high but the RSI is showing divergence. It is this 3rd time that is most important IMO. This is the hardest trade to take as a trader, going against the crowd,usually the hardest trade is the best trade. Nothing works all the time and markets can stay overbought for a long time, but for me I see an opportunity with a defined stop.

The recent move in gold is becoming exhausted and overbought.

I'm not a technician... but doesn't the short term chart show higher highs and higher lows??? I took a ride on the recent dip, thinking about getting out but either way I will probably regret it...

Funny how gold reaches a record after the 10+% unemployment number everyone else saw coming and priced in to their stocks already.  Careful, I wouldn't say its too early to get out.