Gold nears 4-month low

Gold fails to bounce from its 2% retreat yesterday, dipping another 0.5% to $1,259 per ounce, its lowest price since early February.

"Ukraine has fallen to a whisper," says one trader looking at the fundamentals, and "Gold frequently sees weakness and bottoms on options expiration," says another focusing on the technicals.

Commerzbank believes investors are still getting over the surprise slowing in Chinese demand reported yesterday. "Chinese banks are now clearly sitting on considerable gold stocks which they are keen to reduce before they import any new gold from Hong Kong."

GLD -0.5%


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Comments (10)
  • gelstretch
    , contributor
    Comments (3505) | Send Message
    A highly leveraged bullish GLD or GDX play for a January expiration has "conviction" in the upper percentile, I believe. With the metals and miners, the fundamentals are imperfect, however the mathematical probabilities are time tested.
    28 May 2014, 02:42 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (4965) | Send Message
    gel, we have had a nice pullback, but think you can get better pricing with a little more patience. It's the "highly leveraged" aspect that concerns me.


    I might buy NUGT for a little scalp on a further dip in the morning (currently $27.08 bid), but I wouldn't go highly leveraged with a January strike just yet. Would prefer to see gold test and break the lows first. At least that's what I see occurring.


    Sooner or later we'll bottom and be off to the races. But I have a few things I follow that tell me we're not at that point yet.


    Food for thought my friend. Feel free to share your thinking as I can't see everything beyond my desktop screens.
    28 May 2014, 03:20 PM Reply Like
  • ptTL9
    , contributor
    Comments (323) | Send Message
    i agree with you, this does not feel like a washout yet, it's too slow, like a grind. I am tempted to sell my DUST and buy some JNUG for a trade, it probably will bounce here.
    28 May 2014, 03:41 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (4965) | Send Message
    pt, fyi...I saw Larry Edelson sent out an email to buy JNUG when it was $13.45 bid. I got some June 20th call options on NUGT when it was at $27.08 just now. Worth a shot imho.
    28 May 2014, 03:45 PM Reply Like
  • ptTL9
    , contributor
    Comments (323) | Send Message
    I follow Paul Mosgovoy:



    I find Paul's Instablog very educational and honest, unlike Avi's articles no fighting, just stock talk.
    28 May 2014, 03:46 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (4965) | Send Message
    Thanks pt..always looking for more. I just wish I wasn't writing a book and could spend more time on it! But I enjoy writing.
    28 May 2014, 03:57 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    I'm a major gold bull but I can see the writing on the wall.


    The yellow metal may be beginning a long slide after a six month bear market break. We won't see $2,000 gold for many years IMHO. The deflationary winds are just too strong.


    There will be better opportunities to stack in 2015 and 2016...I'd wait to buy.


    If you are holding then you should sell ONLY if you don't understand why people buy and hold gold.
    28 May 2014, 04:18 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (4965) | Send Message
    Could be next year DVL. Be a lot of upset bulls of course. Especially the one's screaming hyperinflation every year.


    I called for lower lows the next 3-4 months, and am definitely leaving the option open for extending that (dead cat bounces along the way).


    We break the lows, which I think we will, it can get ugly for a bit. I can hear the glee in Melissa Lee's voice already while interviewing Peter Schiff.
    28 May 2014, 04:52 PM Reply Like
  • jamerson
    , contributor
    Comments (55) | Send Message
    Gold drop seems impulsive to me, but no clear support level I know of here. I was looking for a little more drop, don't see short cover signs.?
    28 May 2014, 04:33 PM Reply Like
  • rubber duck
    , contributor
    Comments (194) | Send Message
    Keep buying physical. Paper derivatives will be worthless. Now Austria wants to see their gold after Germany was less than successful in their attempt to repatriate from the NY Fed. Get your popcorn.
    28 May 2014, 05:11 PM Reply Like
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