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SOME CAUTION is called for

 

Gold-in-Euros has reached a key resistance level.

 

Will it die here, or push up to the next one?

Caution? Surely depends on a number of "subjective" variables as to whether one should be cautious here. Is gold already owned..... how much is owned.... what is your purchasing currency. A few factors that taken together would help determine how cautious one should [or can afford to] be.

 

Though keeping a decent reserve in dollars, I'll also continue to buy a little here due to the problems facing the Euro/ Euroland. Gold could easily just continue to steadily climb higher in all currencies should uncertainties linger over Euroland.

 

http://news.goldseek.com/GoldSeek/1273233900.php

Respected analyst, David Rosenberg of Guskin-Sheff has forecast that gold will rise to $3,000 per ounce. Unlike Nouriel Roubini who has recently warned that the risk of deflation is abating and the growing risk was of inflation, Rosenberg remains a deflationist, but still thinks gold will continue to perform very well.

 

He argues that the breakdown of the euro is very bullish for gold. With the ECB being no Bundesbank and the Euro no D-Mark, gold is set to soar in euros and dollars.

 

Rosenberg warns that the Euro is less of a "hard currency" than its architects could have ever envisaged a decade ago. Now there is talk that the ECB is contemplating a quantitative easing plan. The case for gold heading to $3,000 an ounce is getting stronger by the day. The euro has already broken below 1.30 to the U.S. dollar and there is plenty of room for additional decline going forward. It's only at a one-year low - wait until it moves to a decade low.

 

Make no mistake - the problems in Greece are mirrored in places like Portugal and Spain - this is not about liquidity, like Bear Stearns and Lehman, it is a crisis in confidence (Banco Santander, widely seen as a barometer of financial health in Spain, cratered 7% yesterday). The FT reports today that there has been some market chatter that Spain has been "negotiating" with the IMF for assistance (€280bln) too. History shows that crises over confidence are tougher to repair over the near-term than liquidity crunches. The fact that Greek short- term bonds have collapsed in price even more - even though the country does not have to come to the market for the next few years so long as Germany comes through after the vote - is a case in point.

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Looks to me we're in a third wave which is further subdividing(third of a third), if that's the case then we're in for a negligle retracement/consolidation followed by a fast and furious move higher next week... is it 1979 again?

 

GCc9510.jpg

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SOME CAUTION is called for

 

Gold-in-Euros has reached a key resistance level.

...

Will it die here, or push up to the next one?

Push up, I think as there is plenty of headroom. If we treat gold as a currency then TA works just as well with gold as USD or EUR. Lots of resistance at $1,159 but if it pops above $1,215 then up we go.

gold08052010.jpg

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Gold's resilience will surely be tested today.

Paper printers have gone to town, with EMs washing in the ink.

Had to happen I guess; the surely wouldn't let the free market operate would they.

The paradox of gold. The EU looks like its falling apart and Euro/ gold climbs. Then they try to patch the economy together by throwing money at it... but Euro/ gold continues to climb as the currency is perceived to be compromised. This has to be the flaw of modern currencies... that they are inextricably linked to the performance of economies.

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Interesting to note that this recent upleg in gold has not been matched by an uptick in Google search or news reference volume:

 

Google Trends: "buying gold"

http://www.google.com/trends?q=buying+gold...=all&sort=0

 

So far we've only had a small spike in this, presumably as we made new highs in Euros and Sterling:

 

Google Trends: "gold price"

http://www.google.com/trends?q=gold+price&...=all&sort=0

 

 

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Gold closing in on its record high in USD today. There is a jump up this morning in london hours. Anyone know why?

Not sure. But noticed Euro is sliding against dollar again. I think gold is well and truly being monetized here. Euro money going into both gold and dollar.

 

Silver not moving in tandem [last time that happened, gold spiked and came back again].

 

Platinum also down.

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Not sure. But noticed Euro is sliding against dollar again. I think gold is well and truly being monetized here. Euro money going into both gold and dollar.

 

European Banks Now Feverishly Betting Against Euro, As Bailout Fails, Gold Surges

 

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Zero Hedge has received confirmation that several of the largest French banks are now actively shorting the euro to take advantage of globalized moral hazard, which with every ensuing bailout does nothing but make the bonuses of French FX traders surge. In other words, the very banks that Europe is bailing out are betting more and more aggressively with each passing day against Europe's own survival! Even George Soros has shed a tear of pride in how beautifully his initial plan to take on the BOE has mutated for the Bailout Generation.

 

http://www.zerohedge.com/article/european-...ils-gold-surges

 

 

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If gold were to go bubble, then this is what it might look like (although I'm thinking the "New Paradigm" might refer to a de facto Gold standard of some sort)?

 

AnatomyofaBubbleGOLD.jpg

 

 

Anyway, looks like tonight could be an interesting night in the yellow metal:

 

Picture5-4.png

 

 

And possible Cup and Handle in Swiss Francs (from Swiss Franc thread):

 

Picture3-8.png

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