Gold finished the day up 2.4% at 927.30 which is a 6 month high. Because of their increased leverage to the rising gold prices I think the gold miners will have a better 2009 than the metal. Many people argue the point about gold being money but remember the Fed uses gold as their primary reserve asset.
Remember yesterday I talked about how the 928 number was big, well here we sit. We spent this afternoon fighting and have settled in right at the number. This is a very bullish sign as they were unable to take us down from the pivot point. I think gold’s 900 floor is getting established and you know investors are going to be taking some profits here along the way. Just remember if we can break convincingly above 928 I think we run hard straight up.
What is impressing me that Gold has decoupled now from USD and this is really becoming a safe haven trade along with the vision of inflation 12-16 months out. As we know Gold is breaking out to new highs in all the major currencies except for the Yen & USD but it appears to be set to make new highs in these real soon also.
It is clear to us investors and traders that the government has NO idea how to fix this economy so people are flocking to Gold and the metals. It is actually funny watching CNBC having to talk Gold but choking on it every time they need to speak.
“It’s continued safe haven jitters,” said Jon Nadler, senior analyst at Kitco Bullion Dealers in Montreal. “With the stock markets looking as poor as they are, investors are saying: where do I park my money?”
Next week I expect the USD to slide and Gold to continue higher. Enjoy your weekend and get ready for next week!
“…gold and economic freedom are inseparable. In the absence of the gold standard,
there is no way to protect savings from confiscation through inflation. Gold stands as
the protector of property rights. If one grasps this, one has no difficulty in
understanding the statists’ antagonism toward the gold standard.”
Alan Greenspan, “Gold and Economic Freedom”,The Objectivist, July 1966.
Im long ABX and it was disappointing to see the stock and a lot of the miners lower on a Friday with skyrocketing spot Gold. How can this happen. Was this, as some indicated on today yahoo chatboard negative price manipulation by institutions? Will the miners break through? Only time will tell…for now Im long, yet cautios at these levels….
Hi Adam, I am feeling the same way about watching Gold run but the miners not participating. As I was watching the trade today I thought more on the line of traders/Investors taking some profits off the table before the weekend and from a nice move percentage wise in the past couple weeks. I also know of some bigger players waiting to see what we do here at the 928 level. I am watching closely like you. If we turn down from here we will have to see where we settle back in for the next try north. If we can break 928 and close above I will be adding more to my mining stocks. Thanks for posting and have your trader friends stop by and chat in the future. I am working on getting up a chat forum soon.
The Pit Boss