Tag: Gold analysis

Gold Update: Major Reversal

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold Has Already Started Its Hunt For Stocks

Chart 1: Gold/S&P500 Ratio Daily
XAUUSDO/SP500 Ratio Chart
Chart courtesy of TradingView.com

Two weeks ago in my special post about the Gold and stocks correlation, I was talking about the coming end of the Gold/S&P500 ratio collapse and I was really surprised by this immediate outcome shown in the chart above. My congratulations to those who luckily bought Gold and shorted the stock index, now you can enjoy a decent 17% gain on the trade and this just may be the beginning. Continue reading "Gold Update: Major Reversal" →

Supply and Demand Will Rescue Gold Soon

Posted on by admin

The Gold Report: The gold sector entered full-blown panic mode in July with the Bloomberg analysts forecasting a dip below $1,000 per ounce ($1,000/oz) this year, and Deutsche Bank forecasting $750/oz. Is this just fear feeding on fear, or is there something else going on?

Jeffrey Mosseri: It is fear feeding on fear, but there are two other things going on. The first is the strength of the dollar, and the second is the weakness in the price of oil. Combined, these two factors have greatly and negatively affected the prices of all metals in U.S. dollars. Over the past year, gold is up 2040% in many currencies.

TGR: In the last couple of years, the idea that the price of gold is being manipulated downward is no longer dismissed entirely as a conspiracy theory.

"Commerce Resource Corp. recently announced excellent drilling results at its Ashram rare earth deposit."

Douglass Loud: I wouldn't want to use the word "manipulation," but you could have an analyst predicting a gold price of $1,050/oz, followed by someone on the trading desk shorting it down to $1,050/oz, without any collusion.

TGR: How big a role does China have in setting the gold price? Continue reading "Supply and Demand Will Rescue Gold Soon" →

Market Extremes: Gold Is Going To Take On Stocks And More In Europe

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.

Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?

XAUUSDO/CME_SP500
Chart courtesy of TradingView.com

As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.

This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe" →

Gold Hits a 5-Year Low: How to Time the Next MAJOR Bottom

Posted on by The INO.com Team

By: Elliott Wave International

"In what traders called a 'bear raid,' sellers on Monday dumped an estimated 33 tonnes of gold in just two minutes on exchanges in Shanghai and New York, sending prices on a nearly $50 downward spiral from which they never fully recovered." (Reuters, July 21)

If you live in the U.S., maybe you've noticed lately that "We Buy Gold!" signs are disappearing from sidewalks in front of pawn shops. The signs really began popping up in 2010-2011, when gold prices were climbing to their all-time high of $1900 an ounce. And even after gold tumbled from that peak in September 2011, the signs stayed up for months. Only after gold fell below $1200 an ounce in 2013 -- and price stayed flat for almost two years -- did "We Buy Gold!" signs become scarce.

Someone may chuckle at this brief record of poor timing decisions, and maybe even put it down to the general investment ineptitude of laymen. Certainly, big-name gold market players -- like central banks, for example -- with their access to privileged information and armies of PhD's would not make timing mistakes like that. Right? Continue reading "Gold Hits a 5-Year Low: How to Time the Next MAJOR Bottom" →

Three Reasons For The Collapse Of Gold Prices

Posted on by The INO.com Team

Many of the gold bugs cannot understand why gold prices keep falling. One would think with all the strife around the world, the financial crisis in Greece, plus the stress and conflict in the Middle East and various other countries that it would be an ideal time for gold prices to go higher. That, my friend, was the old way of thinking, that is not the way the markets really work.

Let's take a look at what's really happening and the three main reasons for the collapse in the price of gold.

(1) We had seen very strong equity markets around the world which gave an opportunity to investors to make money. Remember, gold pays no interest and in fact, you have to pay money to store gold. So in that sense it's a little like holding insurance for a catastrophic event.

(2) Gold has failed to respond to any of the traditional triggers, such as financial unrest and uncertainty. What this signifies is that the perception of gold, at least for the moment, has changed. In any market, perception is perhaps one of the most important elements for dictating price direction. Continue reading "Three Reasons For The Collapse Of Gold Prices" →