Gold Falters

By Global Macro Monitor

Gold’s 30 percent parabolic move from July 1 to September 6 is beginning to falter. Maybe the yellow metal is just out of gas and needs to consolidate a little or maybe it’s something bigger, such as the liquidity issues in the European banking system.

Whatever the case, 1,793 needs to hold or the Fibs of the big move come into play. The 50 percent retracement at around 1,700 coincides with the August 25 low of 1,703 and is also where the river meets the waterfall. A close above 1,900 clears the path for the bulls. The battle is about to get very interesting. We’re flat and happy to be watching. Ladies and gentlemen, “let”s get ready to rumble!”

Gold chart

  1. Mark "El Dorado" Thomas says

    We at Higher Gold think that the dramatic rise in gold and silver prices are a reflection in the diminishing value of currencies and an accounting of excessive money and credit creation since 1980. This is a monetary phenomenon and is now entering the third and last phase where it becomes a bubble but that is the stage where the biggest price gains will occur.

    In fact we think gold will be $5000 and silver $150 by the end of 2015. We invest 100% in gold and silver exchange traded funds and mining stocks. We feel so strongly we also started a newsletter update service devoted to the subject.

    For a 30 free trial of our service go to:

    1. Aar Bee says

      When you see “Gold” in the name of the url of a website… don’t trust them much. That does not mean gold won’t go higher. Just telling from my experience.
      I think gold is going much lower before it gets to 5000 and ounce.

  2. Tyler Durden says

    Gold spent most the 1980s and 1990s at around $400 per oz.

    Only practical use is for jewellery…. so, Unless you are Mr T there is no practical reason to buy it at all. It will collapse back to 1990s values at some future point. But there is no limit to how crazy prices can go before then.

  3. Aaron R says

    Gold does well during times of negative real interest rates. Well, we know we’ll have those for at least 2 more years.

    At the moment though, it has come a long way very fast…

    1. Edward Harrison says

      On the whole I agree with that.An exchange I had with John Hempton made me think a little differently about this. He said real returns in Japan were fine now despite the zero rate interest policy. And this was because of deflation.when you look at currency charts you then see that the yen has done fairly well in gold terms despite the increase in base money.

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