what's up with yo-yo gold?

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moonshine
moonshine Posts: 1,039 ✭✭
in Precious Metals
Just curious if anyone had any theories on why gold was down. What with all the talk about the dollar falling, etc. I would have 'thunk' that it would be up vs. down. It sure does seem to be moving back and forth 'quickly' - like a yo yo.

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  • jmski52
    jmski52 Posts: 24,011 ✭✭✭✭✭
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    Increasing volatility always represents a widening divergence of opinion.

    All it tells me is that someone wants gold to go down about as much as someone else wants it to go up.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • sinin1
    sinin1 Posts: 7,500 ✭
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    I think there is some psychological barrier near $1000 as when it was near there 25 years ago, that would noww be over $2200




    some people with huge investments are swinging the market


    floor traders want movement, they don't care which way and can follow it on a minute by minute basis
  • roadrunner
    roadrunner Posts: 28,374 ✭✭✭✭✭
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    Yo-yo gold has been yo-yoing since it began this bull market in 2002. It will only get worse. Expect to see $100+ daily moves (up or down) in the price of gold eventually. Prior to 2004 the PTB in gold made sure that up moves in gold were limited to $10 and typically less than $6. That was the "rule." Once the $10 rule was broken a new level was unleashed. I think right now the $50 "rule" is in play. As pog goes higher, the "rule" gets bigger.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • konsole
    konsole Posts: 795 ✭✭✭
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    99% of the time it move inversely to the dollar. Today the dollar index is up +0.4 which is 0.5% and a fairly significant rise, so down go the metals. Tomorrow if the dollar index falls a bit the metals will rise a bit.
  • moonshine
    moonshine Posts: 1,039 ✭✭
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    darn, still falling like a rock.

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