So what kind of exposure do gold investors have here?
Posted on 12/04/2009 7:37:26 AM PST by danielmryan
FRANKFURT (MarketWatch) -- Gold futures fell sharply on Friday, breaking below the $1,200-level, as the U.S. dollar surged against its rivals buoyed by data showing that unexpectedly few jobs were lost in November.
Gold for December delivery fell to an intraday low of $1,186 an ounce in electronic trading on Globex.
The contract was last down $31.20, or 2.6%, to $1,186.20 an ounce.
Gold and the dollar have a very strong inverse correlation -- when the dollar gains, gold prices tend to fall.
"The pullback is related to the dollar reaction to the jobs data," said James Steel, gold analyst at HSBC in New York.
(Excerpt) Read more at marketwatch.com ...
As I write this comment, spot gold's at $1184.20 and dropping.
Pop goes the bubble maybe?
What did I say the other day. When a commodity has been rising for months and it looks like it can’t go any direction but up, look out.
This is probably just a correction, but who knows.
Time to buy, IMO.
GOLD!
So what kind of exposure do gold investors have here?
Buy on the dips.
I still wish that I had bought some, like two years ago!
Arghh!
After going up nearly every day in November it is not surprising for gold to let off some steam today.
Corrections in bull markets are normal and if this is the beginning of a correction then gold can drop 10% without causing any alarm among the bulls.
These corrections are nothing more than the bull wanting to see if the newcomers really want to hang on for what should be an exciting ride as gold continues to increase in the long term.
Yes, the stock market may be strong today, but I was looking at some numbers and in 2000 the Dow was 10,000 and today it is 10,000. Does not look like that was a good investment.
Meanwhile, in 2000 gold was 250 and today it is nearly 1200.
OMG!
MY EYES! MY EYES!
Hey, I like Liddy, but NOT THAT MUCH! :-)
Yes, that would have been nice huh. Oh well...
True words from someone that markets crystal balls.
Nah, that would be "sell to the dips"
A bit of a change from near-term correlations. Gold and stocks have risen in tandem because a falling greenback is supposed to be good for stocks, but not today.........
Yes the correlation is broken today and not just mildly. Oil is up though and oil and Au usually move together. Oil up on prospect of a stronger US economy
I think we will see some more of this
China say might have talked down au a bit...implied they would not buy au at a bubble price
A commodity is only worth what some one is willing to pay for it.
Gold cannot climb to infinity. Consider this drop a warning. The smart money will was out today.
If the current dollar carry trade decides to unwind prepare to be a “bag holder”.
“- Gold regularly drops up to ten percent in three days or less and once dropped more than twenty percent nearly without a break in 2008. Bubble price action goes one way.”
http://www.freerepublic.com/focus/chat/2205674/replies?c=30
It was true in March, it was true in September, and it’s true today.
Buy on the dips.
True words from someone that markets crystal balls.
Therefore, the better advice is to “buy on the drops.” Unfortunately, that takes much more guts, because you never know how far a drop may continue.
Just as soon as I get some stimulus money I will get my crystal ball company up and running, My I put you down as my first sell. LOL
almost on cue... not even 48 hours after china announced it would be buying on the downs instead of the ups, NY is once again driving the price down so the chinese, our debt holders, can get a better deal.
it happens with such regularity its almost like clockwork. as if someone were selling a horde of gold they had stockpiled in a old army base in order to pay off massive debt before the dollar turns completely into toilet paper
expect another radical bump up on sunday night
Reminded me that Confusius said, “Economist making forecast using crystal ball doomed to eat ground glass.”
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