Checking in on Gold

Has gold topped out? The guys over at MarketClub don't think so. They take a look at the gold chart and highlight why the recent dip is just a normal course of action for the longer-term uptrend.

Here's their video on gold where they highlight support levels to buy at and identify price targets going forward. They note that gold clearing the psychological and technical resistance area of $1000 was a big deal (duh). However, even more important could be the fact that it has been able to remain above that threshold for over a month.

Lots of focus on gold over the past few months with hedge fund managers like David Einhorn singing its praises so we thought it prudent to examine how gold has been shaping up, so make sure to check out the most recent technical analysis video on gold.

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Comments

[seer:]

my thinking is that oil stocks are a better play than gold . during inflationary times, oil will rise and you get a nice paying dividend as you see the stock move.if your wrong for a few months you have the dividend.
gold , although an inflation hedge, cost s money to store, if you have a nice quantity of it.it doesnt pay dividends and hard to borrow on it.

Oct 29 10:24 AM

[ussmls7:]

Washington is a giant wealth destruction machine, Obama's cash for clunkers,tax the wealthy will fall short to pay for Obama's programs to spread the wealth, thus all will be hit with higher taxes. The Feds QE has failed to stop the coming inflation across the board. Government moters (GM) needs GMAC to get more money from the tax payers to stay alive. Oil is rising in price, so is gasoline & the world is dropping their dollars & buying physical gold & other hard assets. China has increased its buying of oil,gas,gold,world wide. They are investing in Africa's rich resourses at a fast rate,while the US is adding more debt. That puts physical gold/silver a buy on any dips. After reading Jim Sinclair's dalily comments, the outlook for the US is not good & many economist agree that gold has a long way to go up.

Oct 29 02:05 PM

[Spartacuss:]

Todays upsurge shows the tight relationship to the dollar as both gold and oil made the corresponding move on dollar lightness.

And, as the Bovespa was getting beaten down for instance and beaten down hard, as soon as the dollar hiccuped, came roaring back.

So, as is posited by gurus greater than I the mantra is "watch the dollar". Further to this is to point out that the Fed has no choice but to debase the dollar despite rantings to the opposite. The reason is that the debt has reached a tipping point in that there is no way to balance the budget anymore; deficits will be de jour permanently and couple to that is the simple realization that rates CANNOT BE ALLOWED TO GO UP, as the debt service on public debt will eat the whole cake forcing more deficit. Couple that with declining tax revenue and we have the perfect storm.

The dollar is doomed. Period. Sure, in the mean time we can meander on the course to doom, but doom is certain and the only real haven in all this is gold, not as an investment, but as a safeguard against the declining dollar, ditto for oil with one exception, and that is this: once serious depression sets in, oil consumption will crash and so will price on oil comparitively. And if the electric car ever becomes the new standard, the same applies to oil. We are on the cusp of dramatic changes here in America and not just economic.

Futher, with P/E ratios shoved to the moon, equities are looking for a substantial reset and that includes oil stocks. We live in very treacherous times...take nothing for granted and be as conservative as possible.

Oct 29 04:05 PM