When you see infomercials all over the place praying on the old and unwise thats even more reason why gold is down 50 bucks and dropping.......
The monthly chart of gold looks like double topped, a bearish sign. The money that the FED injected to the market may not off set the loss of virtual money from the burst of financial bubbles. Most people are afraid of inflation, but deflation may be the real threat.
BY THE WAY---
The measured target price of GLD based on the height of the double bottom, is about $110.
The next target for the upward channel is right around that same price.
(This article says it is a little lower, based on the spot price of gold:)
Wow, "MONTHLY" chart? I bet you had to search hard to find a chart mode that showed a double top without showing the MASSIVE months-long DOUBLE BOTTOM.
Check the much more-often used WEEKLY chart--a MASSIVE, CLASSIC double BOTTOM. And unlike your double top, this double bottom has been MASSIVELY CONFIRMED by a HIGH VOLUME BREAKOUT on Feb 11.
Guess you are also averting your eyes from the "golden cross" of the 50-day over the 200 day, ON THAT SAME BREAKOUT DAY. (Do you know why they call that the golden cross?)
Guess you are pretending not to notice the moving averages both moving UPWARD now. And the excellent support at the 50-day. And the multiple confirmations of the UPWARD CHANNEL that is about $10-12 dollars high and has moved from a low of $70 to $90 now. (I'm speaking of GLD, not gold, since this is the GLD forum.)
If you want to see a clean DOUBLE TOP, I've got one for you---the U.S. DOLLAR:
(Admittedly, this double top hasn't confirmed either--YET.)
You are watching too much CNBC/MSNBC. If you print a trillion dollars a week, and do not think BIG inflation will be the result of such irresponsible behavior, then you really need to go the library and pick up some material on the subject. But then if you believe the folks in charge, and the complicit media, it doesn't really matter what I, or others with their eyes open say, does it. I'm sorry for adding the political component, and I mean BOTH sides of the pig trough!
I love reading pages of really smart articles about how the gold price is going to SOAR, and then coming on here and reading, "duh, gonna fall hard". Gee, good reasoning.
Do you know how to read a chart?
There's lot of sites that let you look at charts on the "internets".
Like this one, that clearly shows a MASSIVE double bottom confirmed with a massive breakout, and a well-confirmed upward channel, which gold is again rising from bottom to top of:
It also shows the BULLISH "golden cross" of the moving averages, the BULLISH recent upturn of the 200-day MA, the BULLISH improving relative strength, the BULLISH oversold MACD, etc.
The Dow-to-Gold ratio is pointing straight toward 3.0, which is also bullish (Dow 6000 Gold 2000 eventually? unclear):
There are also lots of articles, like this one which says EXACTLY what I've been saying on here for weeks:
In fact, the only bearing sentiment is from the "duh, umm, goin' down" crowd--which is ALSO bullish for gold!
Bubble in gold? LOL not NEARLY yet. Not with the GLD vault holding 80% more gold than it did 6 months ago!!
No, the bubble is in the U.S. DOLLAR. And THAT bubble IS popping:
Now, THAT's what a DOUBLE TOP looks like!
And the MASSIVE fake-dollar-printing the fed just announced, is only going to light the commodities fire MORE. Near-term gold target=$1100. Then we'll see. (In the meantime, probably GLD=$98 next week.)
Seriously, what's your gold-bear thesis? That the fed is CONTRACTING the money supply? LOLOL!
There is considerable uncertainty about the direction of gold price. The inflationary tactics of Bernanke and Obama should be increasing gold price, but this is not happening.
It may be that gold will fall less than other assets, and in ten years holders of $400/oz gold will not feel too bad when they read about the Dow breaking 800 to the downside. Cash just may be the place to be.
Gold will give up as much as 10% OVER THE NEXT 2 WEEKS.....Looks like the spdr could head much lower into close today, But the market is showing very bearish futures....Mon.-could be the hardest hit..
I am the only one that I know personally that invests in precious metals. I started off in 2005 with GLD but moved to physical bullion & Golmoney cos I just dont believe that there is anything behind the GLD curtain.
Once people I know start telling me that precious metals are a good investment, and that they own physical metal, then I will believe that we are nearing the end of the cycle. Right now people that own physical metals are in the very small minority.
Long way to go from here buddy but nobody is going to stop you from jumping off the train....!!