Mr. G

Where's Gold Going from Here? Part 3

People buy gold for reasons,as a hedge against inflation,supply and demand, or as a trader perspective because of its recent inverse relation to the dollar. The author advises to keep watching the dollar.

My observation is that the inverse relation to the dollar is still intact.I do not see more upside to gold in the near future because of increase in the US economy recently which is boosting the dollar. This is a shorter term view.
On the other hand, if the low FED rate remains too long, inflation may set in, and gold could then commence another rally. I think this is the signal for reinvestment in gold. If your betting on gold and have a longer term view and have the patience to wait, physical gold is probably a safer asset because its not actively traded on the exchanges except that some ETFs are backed by physical gold. GI

Gold vs. the Dollar: Paper Still Beats Rock

All the fundamentals are in place for a longer term rise in gold. Trading futures belongs to the institutional players and the recent selloff is traditional in this market. When people trade, they post stop losses, and the difference between the market price and the stop loss is liquidity for the institutional trader. You must think like a trader in the short term to avoid the loss.
Gold has been trading inverse to the dollar for some time. Once the dollar resumes its downtrend below 75 on the index,one may find another buy point. GI

The Case for $1300/Oz Gold

I agree with the author, but the overlooked reaction is the hedgefunds and big money boys reaction when the US keeps falling into recession. The market psycology of these players may push gold to well over $1500 the ounce.

Is it a Good Time to Sell Gold Yet?

Probably the least incitful analysis I have ever read

Has Gold Reached Bubble Territory?

I think the biggest driver of gold price lies in FED activity.Increasing the amount of money(Printing more money) severely damages the dollar. When inflation is rising, the FED should raise the rate but they arent! Gold, like other commodities is dollar denominated. Ex Fed Chief Volker defined inflation as too many dollars chasing too few goods. These are the drivers I see in commodity price increase, as well as global growth. AS big firm money managers perceive this risk, the market psycology will strongly support the price increase in gold. As far as gold prices going up and down, you are witnessing profit taking. Notice golds recovery in price after the last sell off. Traders love this pattern.

Did Gold Bugs Miss the Fat Lady?

The most salient point is that gold appears tied to economic parameters perceived in the long term,not short term teasers. As inflation, stagflation, and recession lingo creeps into our mixed views, particularly in th EU and the US, gold appears to be a steady factor to hedge against currency fluctuations and golds ultimate moves may not be tied to just one factor.