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Gold's Friday move is always opposite that of the week.

DoubleEagle59DoubleEagle59 Posts: 8,308 ✭✭✭✭✭
in Precious Metals
Have others noticed this too or am I just dreaming?

If gold moves up during the week, it'll trend lower on Friday.

If gold is very quiet or moves down during the week, it'll climb on Friday.

Who agrees?
"Gold is money, and nothing else" (JP Morgan, 1912)

"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

"I only golf on days that end in 'Y'" (DE59)

Comments

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    I haven't "felt" that trend. But you may want to go back and check the charts to see if it's valid. One current valid trend are the higher gold moves on the 1st of the month....usually at least 2 or 3 days. So far 8 months in a row. I vote for a 9th.

    What has been typically happening for the majority of bond weeks is that by Thursday/Friday things start recovering for gold and rates start falling back. This week the Greece/Euro Union contagian and/or the Health Care Bill caused 2 yr. rates to spike up from around 0.90% to 1.08%...a huge jump. It was a triple witching effect during bond week. And no doubt the PTB took advantage of that as a reason to whack gold. Now that the commotion is subsiding gold should probably have far less head winds going forward. Liquidity is still running into the market place so gold should be able to move from here. It may take until April 1st though for gold to break out.

    The gold commercials added a hefty 15,000 long contracts this past reporting week (while selling several thousand shorts), a sign that gold will probalby put in at least a short term up move.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • laserartlaserart Posts: 2,255 ✭
    The sinking of a S. Korean Naval ship by the North Koreans also pushed gold up some.
    "If I had a nickel for every nickel I ever had, I'd have all my nickels back".
  • RedTigerRedTiger Posts: 5,608 ✭
    I haven't noticed. There are trends like that related to day trading patterns, and when different international markets open and close. An explanation for counter-trend Friday's might be along the lines of those traders that made money during the week want to cash in and take their profit, instead of letting it ride over the weekend. That said, don't count on it. The bad news is that once a time trend, or seasonal trend, gets recognized, traders usually will start jumping ahead of the trade, and the tendency will start to fade.
    Investment blog: gold, stocks and more
  • PerryHallPerryHall Posts: 46,122 ✭✭✭✭✭


    << <i>Have others noticed this too or am I just dreaming?

    If gold moves up during the week, it'll trend lower on Friday.

    If gold is very quiet or moves down during the week, it'll climb on Friday.

    Who agrees? >>



    I've noticed that too.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    I've noticed gold has not moved much all year.

    image
    Avid collector of GSA's.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    chart of 5 yr / 2yr interest rates

    Gold hasn't really moved since December (other than down) because the interest rate driver has been down. The above chart shows the strong ABC correction that has occured since the start of December. It's taken 4 months to run through that correction. The final C leg started in March and has just completed 5 waves down....prior to turning the past 2 days. If you look back over the past year the chart closely mirrors the moves in gold. The huge moves in May and November as well as the solid moves in June and August are quite evident. Though not a perfect correlation most every significant 2009/2010 leg is mirrored in the 5/2 yr rate ratio.

    The long vs. short interest rate ratio chart is telling gold to get a move on for 2010. The ratio blew through the 200 dma line and then bounced off a very oversold 2.4 which has been strong support for a year. Obviously the general trend for long rates vs. short rates has been up the past year.....it appears it is time to continue that trend.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • DoubleEagle59DoubleEagle59 Posts: 8,308 ✭✭✭✭✭
    see what I mean??
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • OPAOPA Posts: 17,119 ✭✭✭✭✭


    << <i>see what I mean?? >>



    No I don't...Gold it's been up all week including Friday (so far)
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    And this being a 3/10/30 yr bond auction week, gold usually comes back stronger by Thursday and Friday. It was also helped along by being the first full week of the month/quarter. Gold has been coming out strong at the start of each month. Some think because that's when physical deliveries are made on the Comex. And as short sellers scramble to find some gold, prices have tended to rise.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • Steve27Steve27 Posts: 13,274 ✭✭✭


    << <i>

    << <i>see what I mean?? >>



    No I don't...Gold it's been up all week including Friday (so far) >>




    Really, today gold is adding on to the gains made previously this week. I assume it's due to the impact of Greece's economy on the European Union.
    "It's far easier to fight for principles, than to live up to them." Adlai Stevenson
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