Is gold's drop well below $900 an aberration?

northcoin

When it finally looked like $900 an ounce would be the new floor for gold we get hit with a signifcant drop today. Buying opportunity or beginning of a decline to a lower floor?

AUandAG

down, down and more down.

bob

PS: maybe up, down and up?

bidask

retest to 850

percyb

more sellers than buyers.

ttown

Buy on the downtrend or you'll be sorry.

Coinlearner

In past years, summer months have been a down time for PM's and coins. But, one never knows what could happen or trigger higher prices.

Walmann

I started typing some of the variables involved that may impact golds price this summer and realized two things.

One it made my brian hurt.

Two, as no individual or group know how each and every variable will develop its all educated guessing. Some will guess correctly others will guess as I will.

droopyd

Oil was down about 3% today so why not gold too?

BobaFett72

slight dip. the oil prices are only going to continue to rise.

RedTiger

<< <i>Oil was down about 3% today so why not gold too? >>



Yes, in this market, oil is the dog, gold is the tail. The conspiracy folks will soon have a lot more to write about, with options on GLD soon to start trading.

Bear

Gold drops to 770

Johnp

Ok I have been following Gold/Oil/Dollar for a few years so here are my 2 cents worth

Oil follows dollar ( oil is pay in dollar world wide dollar goes down oil goes up)

Gold follow dollar ( dollar goes up gold goes down)

Interest rate follow dollar ( interest rate goes down dollar goes down )

So Dollar goes up- Oil goes down - Gold goes down and here is the kicker interest rates goes up or stays the same.

So the question we should be asking is where is the interest rates going ? I we know that we can find out what everything else will do. ( well rest of the world stays the same)


Next time oil goes up (and it will chek the dollar it will most like be going down that day)


So where is interest rates going well many people think they will stay the same for a while as the fed will not move it lower. So if we know that gold will slowly go down to a new lower base maybe 850 and stay in a range of 850 to 890 until something of the above changes.

I am sure I am trying to make things much more simple than they really are but I think there are some truth to it.

OneCent

Interest rates will likely RISE in the second half of 2008. Fed wants to control inflation. So, based upon your theory, if interest rates rise gold goes down. No?

RedTiger

<< <i>Interest rates will likely RISE in the second half of 2008. Fed wants to control inflation. So, based upon your theory, if interest rates rise gold goes down. No? >>



The punters are betting that the Fed starts hiking rates in October. Long term bond rates have been moving up this week. The linked article isn't from the most popular source, but there are many others saying the same thing
from
http://www.livemint.com/2008/05/23230504/Inflation-scares-and-emerging.html
link


<< <i>the Fed fund futures market was pricing in a 70% chance of the US central bank tightening rates by 25 basis points by October and a 25% chance that the rate would go up another 25 basis points to 2.50% by the end of the year >>

cladking

Yes.

This can't last long.

Watch for a run-up to $1200 starting within a couple months.

tcmitssr

Gold settles at $600 or less by the end of the year and does not come close to $950 ever again this year.

cladking

<< <i>Gold settles at $600 or less by the end of the year and does not come close to $950 ever again this year. >>




The trend is your friend.

In this case continued inflation is your friend as well because there is no alternative.

roadrunner

We've probably already seen the low of 2008 at $846. Expect another run into the upper 900's within 2-6 weeks. This is all by design so the traders, banks, hedge funds, and brokers all make money....at the expense of the long term holders.

roadrunner

HonoluluDude

Is gold's drop well below $900 an aberration? No, it's called consolidation.

dac076

<<Watch for a run-up to $1200>>

<<Gold settles at $600 or less>>



I'll average those two and say $900

fishcooker

Is gold's drop well below $900 an aberration?

No, in fact the price today is not even at the bottom of it's normal range.

However, don't forget we are 5 months away from having a new Sherriff in town - maybe 4 months from knowing who that Sherriff will be with good certainty.

If not already, at some point the politics of the next government will affect investment markets. Gold included. Watch for it.

BlindedByEgo

An especially volatile market these days. I dollar cost averaged up and I suppose that I may do the same back down.