narco

PnF charts are garbage imo. Only last week the gold one has a bullish price objective of $1350 and now shows $690. I'm not looking at the chart right now but silver has massive support around $6.50.

Nice charts. Have you looked at this old trendline. Any thoughts on this holding? The september move to $740 looks like it just needed to pay some fibonacci respect.

If fundamentals drove the paper price of gold it would be well over $1200 by now. The fact is I don't see this market as the real price of gold which we know is being bought in the retail sector in record volumes. $650 gold might bring some problems for the cartel as it attracts further physical buying that could potentially lead to a comex default. I hope it happens so we can find the true price of gold.

Good chart. I'm thinking almost exactly the same thing for a number of reasons. 1) A mid cycle bull usually has a 50% correction. 2) Elliot wave theory shows we've made a 4 point move down with a final 5th incomplete. 3) There isn't a great deal of support at these levels but a lot of strong support in the $650 area. 4) Deleveraging. Until this ends, people will have to keep selling gold.

Anyone got an inflation adjusted chart of palladium? I think we're easily at 40 year lows by quite a lot. Same with silver.

Gold got whacked it seems. Off to $780?

LOL its Moving Average Convergence / Divergence. Swing traders can use the cross as an indicator of a bullish or bearish move. This one potentially looks bullish but not yet confirmed.

Moving away from day trading and looking at the long term weekly chart, it doesn't look to bad imo. We're still well in the upchannel, MACD looks close to a bullish cross. From the EW perspective, it looks like we've had an A,B,C correction from the highs and a wave 1 and 2. I can also see the alternative EW point that we're starting a wave B of a larger correction of the entire bull move. Wave C could suggest possibly somewhere around the $650 level into 2009? I hope so. Maybe someone else can read this better?

Hyperinflation Might Destroy Dollar, Euro & Sterling http://www.cnbc.com/id/15840232?video=887658998&play=1 The dollar, euro and sterling are going to be destroyed Zimbabwe-style, believes Martin Hennecke, senior manager, private clients at Tyche. He makes his case to Todd Everts from Wall Street Global & CNBC's Martin Soong.

Interesting. Anyone got any ideas how they can hedge against such price movements? Maybe a significant short position?

I think the word is purchasing power parity. If gold was traded on a purely physcial basis only, then gold would instantly become the benchmark of benchmarks. The problem with the gold market is levergage upon leverage and derivative products. Right now its a flakey market and these massive swings make it impossible to gauge value.

Ugly.

LOL @ Silver. What a dog. Any lower than here and it's not even in a bull market anymore.

I'm a bit suprised about silver, its clearly not a great deflation hedge right now and is definately being lumped in with the industial commodites. Surely expect it to start moving up rapidly when gold break out to new highs in dollars.

It's incredible to see the destruction of our currency. This time last year I was buying brand spanking Krugerrands at £380 ish. It was also very easy get hold of gold back then.

I'm not liking how gold has behaved during the NY session today. It has now become an Anti DOW Jones play by the look of it. The currency markets are just in a tailspin. If the DOW rallies hard at some point gold looks like it could sell off sharply in $. I want to see gold smash through $920 quickly and detatch itself from this kind of action.

I told a few people at people at work to take a look at gold last year around the £380 level . It seems a lot more people around the office are now talking about it. Theres a ton of fresh interest in gold that just wasn't there before this banking crisis really became front page news.

What the hell?

Something is surely brewing here.

The shoe shine moment for gold will be when the public line the streets to cash in on anything that remotely contains some gold and silver. Stampede for Precious Metal Monday, Jan. 28, 1980 http://www.time.com/time/magazine/article/...,923918,00.html

Which makes me think we're closer to 1975 in this bull run possibly.

Possibly but nothing really stands out to indicate where we currently are historically.

Ok I'll start with this just for laughs. Gold is a bubble, buy banks!! http://www.cnbc.com/id/15840232?video=873003261

USDX up sharply Last trade 79.403 Change +1.683 (+2.17%)

I'm thinking for use as small change and during the GBP devaluation period. I don't really want to be handing out gold or silver for small transactions. If 1 or 2 Swiss Francs will continue to buy a loaf of bread then it definately makes sense to start accumulating them. As a fiat currency, I'm just curious whether it will.