Immediately after experiencing an exceptional bull market run from $250 an oz in 2001 to $1,900 an ounce last summer, gold hasn't had an easy time of it since.
Three times it plunged around 19%, and rallied back, only to run into resistance every time at $1,800. It's potentially doing so again.
That's likely baffling buyers who have been viewing so numerous big-name experts and fund-managers become very bullish for gold, with thinking that looks sound.
The latest Reuters poll shows precious metals analysts became more favorable for gold and silver than they have been in several months.
Even technical analysis was supporting the bullish outlook. My technical indicators initiated a sell signal on February 19, almost exactly at that peak, yet had me and my subscribers back on a buy signal in mid-August and back to a 20% position in the gold etf GLD.
The case for gold, at least from the fundamental side, still sounds bullish .
As Ray Dalio, chief investment officer at Bridgewater Associates, the world's biggest macro hedge fund lately told CNBC audiences, "We have a situation exactly where there is a lot of debt, which results in central banks printing money, that's bullish for gold."
Some other analysts add that fears of the looming 'fiscal cliff' in the U.S., and possibility that rating agencies will certainly downgrade the credit ranking of the U.S. again, are positives for gold over the next few months.
There is also the expectation that the Fed's newest QE3 program will likely be inflationary, and gold is the conventional hedge towards inflation.
Then there is a brief history that gold frequently (but not often) moves opposite to the U.S. dollar, and the dollar has been in a decided decline since July.
Could gold possibly be saying that the 'fiscal cliff' will be successfully resolved? Or that central banks are going to aggressively market gold from their reserves to raise cash to help with their debt loads? Or that the global monetary recession will continue and lead to deflationary pressure instead of rising inflation?
Three times it plunged around 19%, and rallied back, only to run into resistance every time at $1,800. It's potentially doing so again.
That's likely baffling buyers who have been viewing so numerous big-name experts and fund-managers become very bullish for gold, with thinking that looks sound.
The latest Reuters poll shows precious metals analysts became more favorable for gold and silver than they have been in several months.
Even technical analysis was supporting the bullish outlook. My technical indicators initiated a sell signal on February 19, almost exactly at that peak, yet had me and my subscribers back on a buy signal in mid-August and back to a 20% position in the gold etf GLD.
The case for gold, at least from the fundamental side, still sounds bullish .
As Ray Dalio, chief investment officer at Bridgewater Associates, the world's biggest macro hedge fund lately told CNBC audiences, "We have a situation exactly where there is a lot of debt, which results in central banks printing money, that's bullish for gold."
Some other analysts add that fears of the looming 'fiscal cliff' in the U.S., and possibility that rating agencies will certainly downgrade the credit ranking of the U.S. again, are positives for gold over the next few months.
There is also the expectation that the Fed's newest QE3 program will likely be inflationary, and gold is the conventional hedge towards inflation.
Then there is a brief history that gold frequently (but not often) moves opposite to the U.S. dollar, and the dollar has been in a decided decline since July.
Could gold possibly be saying that the 'fiscal cliff' will be successfully resolved? Or that central banks are going to aggressively market gold from their reserves to raise cash to help with their debt loads? Or that the global monetary recession will continue and lead to deflationary pressure instead of rising inflation?
About the Author:
I don't have the answer to those queries, but I can assist you answer some of your gold concerns. Look at my website for more information: Bullion Direct.
No comments:
Post a Comment