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Gold building for take off … It is only a matter of time and you will see gold going to new highs. Who said the crisis is done ?

(Last Updated On: April 18, 2012)

Gold building for take off … It is only a matter of time and you will see gold going to new highs. Who said the crisis is done ? Get ready and say good bye to 1600 level very soon . Give it a week

 

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I think you could be very right. The Eurozones debt problems are far from over and fears of contagion still remain high. All eyes on those IMF and World Bank sessions along with G20 for endorsement of that belief. Gold up, single currency down looks on the cards as fundamentals start to hit home again.

 

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I think it just a guess like most fundamentally based forecasting. It will go up if people buy it. I’d rather watch the price action. You know the price and the price is value of all the fundamentals known by everyone and, more importantly, what they think, hope, expect and fear about the fundamentals.

 

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I beg to differ. I see Gold (and Silver) sitting right on the edge of a precipice. With U.S. equity markets having broken 7 month uptrends another bout of risk aversion will once again see Gold liquidated as per the last few sharp equity market selloffs since the onset of the GFC. Further margin requirements for metals on the CME were reduced last night. If you were bullish the metals and new margins allowed you tyo buy more then as a trader you would. That did not occur thus i sense the bulls are just hanging on grimly. A break in Gold below US$1630 and in Silver below US$30.90 could see some nasty action. I would not be surprised to see a very large one day fall in coming days.

 

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Gold is an inverse real rates trade. G10 real rates are substantially negative in general, there isn’t too much room for a substantial appreciation here and the risks are asymmetric.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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