3SOF

Gold Prices Pop to New Record Highs !!!


Gold prices broke to new highs Wednesday as investors bought the metal as protection against a weakening U.S. dollar.
Gold for December delivery was adding $25.50 to $1,372.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,375.70 and as low as $1,350.
The U.S. dollar index was slipping 0.39% to $77.06 while the euro added 0.29% to $1.40 vs. the dollar. The spot gold price was up $20.20, according to Kitco's gold index.

Gold prices were rallying hard after the minutes of the last Federal Reserve policy-setting meeting signaled that the central bank is ready to jump-start another stimulus program. The Fed governors downgraded growth prospects for the U.S. economy for the rest of 2010 and 2011.
Although there was no consensus, many participants agreed that "it would be appropriate to provide additional monetary policy accommodation," if the unemployment and inflation rates continued to be low. The Department of Labor will release key inflation indicators -- September's core producer price index and consumer price index -- over the next two days and both are expected to remain unchanged.
Gold prices had been struggling as investors took advantage of high prices and booked profits, but after the Fed minutes were released, gold started to pare its losses and has rallied to almost new record highs. Gold has now hit a new intraday high of $1,375.70 an ounce, easily surpassing its previous record of $1,366.
More accommodative measures mean the Fed will expand its balance sheet by printing more money to buy more government debt and literally pump more money into the system. As the Fed prints money, the dollar loses value, which is good for gold prices.

The dollar-backed commodity becomes cheaper to buy in other currencies, which rise as the dollar loses steam. In addition, the brewing global currency war, as countries rush to lower their currency values to increase export growth, highlights how frail paper money is and gold, a hard currency, becomes a more attractive place to protect wealth.
Currency issues and the race to debase might also see an additional push Wednesday after China reported that September exports rose 25.1% as its currency stayed low despite the country's announcement in June that it would let the yuan rise in value.
Wednesday's rally in gold is also triggering technical buying from traders who sold at record prices and are now looking to jump back in. Scott Redler, chief strategic officer at T3Live.com, had recently gotten out of his macro longs in gold; he trades the SPDR Gold Shares(GLD_), which is only the second time he has done that in the last 3.5 years.

Gold...

The gold up-trend is accelerating, highlighted by a series of ever-steeper trendlines. The potential for further rapid gains is great, but so is the risk of a sudden reversal. A 21-day Twiggs Momentum break of its rising trendline would warn of a correction.

* Target calculation: 1260 + ( 1260 - 1160 ) = 1360

Gold...

Spot gold is testing support at $1320. Downward breakout would signal a correction to $1260, while recovery above $1350 would mean another test of $1390. Falling Twiggs Momentum (21-day) favors a correction, but respect of the zero line would signal another primary advance.

Gold...

Spot gold found support at $1320 and is now testing resistance at $1365. Yesterday's long tail indicates buying pressure. Upward breakout would test $1390. Twiggs Momentum (21-day) stopped falling, breaking the declining trendline. Respect of support at 6% (by TM) would indicate another strong advance.

* Target calculation: 1390 + ( 1390 - 1320 ) = 1460

THIS GOLD RALLY IS REAL.......

Gold stunned the financial world yesterday and spiked higher on fears that the USD was set to free fall as China and the US move closer to economic warfare.  The systemic risk to the USD is at such a high level that the entire world is on edge and the smart money is fleeing into gold bullion and gold equities.

For those of us who don't have the cash to play the bullion game with the hedge funds and billionaires of the world, there is always the option of buying an aggressive junior miner.  Junior mining stocks are risky but can be very rewarding if you back the right company.  The rally in gold has trickled down to the speculative side of the market and millions of dollars are being made in some of these junior mining penny stocks.  It has not been uncommon to see 5 to 10 fold moves in the stock prices of some junior miners,  this past month.

Gold...

Spot gold is consolidating in a narrow range below resistance at $1420, favoring continuation of the up-trend. Breakout would signal a surge to $1500. A Twiggs Momentum (21-day) trough high above zero would indicate another strong advance.

* Target calculation: 1380 + ( 1380 - 1260 ) = 1500

Gold...
A strengthening dollar is likely to weaken precious metals and commodity prices. Gold is forming a rounding top while bearish divergence on Twiggs Momentum (21-day) warns of a correction. Failure of support at $1360 would first test $1320, but could carry as low as the June high of $1260.

Gold...

A weakening dollar is likely to strengthen precious metals and commodity prices. Gold encountered short-term support at $1350, long tails on daily candles indicating buying pressure. Bearish divergence on Twiggs Momentum (21-day), however, continues to warn of a correction; only recovery above the declining trendline would negate this. Failure of support at $1350 would first test $1320, but could carry as low as the June high of $1260.

Gold...

The weakening dollar is likely to strengthen precious metals and commodity prices. Gold found support at $1320, evidenced by the long tail two days ago. Twiggs Momentum (21-day) remains below zero, warning of a correction; only recovery above the declining trendline would negate this...1st chart

Twiggs Money Flow (21-day), however, recovered above zero on GLD, indicating buying support...2nd chart

Gold...

The weakening dollar is likely to strengthen precious metals and commodity prices. Gold is testing support at $1320; recovery above $1350 would signal another attempt at $1420, while failure of support would offer a target of $1220*. Twiggs Momentum (21-day) below zero indicates weakness, but recovery above the declining trendline would indicate another rally.

* Target calculation: 1320 - ( 1420 - 1320 ) = 1220; 1420 + ( 1420 - 1320 ) = 1520

Bullish divergence on Twiggs Money Flow (21-day) indicates buying support on GLD .

Gold...

The weakening dollar is likely to strengthen precious metals and commodities. Gold recovered above medium-term resistance at $1350, but Twiggs Momentum (21-day) remains below zero. A TMO peak below the zero line would warn of a down-trend — as would reversal below $1350. Respect of the rising trendline, however, would indicate another rally.

* Target calculation: 1320 - ( 1420 - 1320 ) = 1220; 1420 + ( 1420 - 1320 ) = 1520

Twiggs Money Flow (13-week) recovered above zero, indicating buying support on GLD. But reversal below zero would be a strong bear signal.

GOLD...

Gold Prices: Where Will They Finish 2011?
NEW YORK -- The answer to the question "where will gold prices go in 2011" is one of the most sought after predictions on Wall Street.
Gold prices rose 400% in the past decade and made a record breaking run in 2010, rising 26% and hitting an intraday high of $1,432 an ounce.
There are many factors that move the gold price. In 2010, one of the most popular reasons was investors buying gold as a hedge against financial disaster in Europe as European Union nations like Greece and Ireland teetered on the brink of default. The response by most governments, one of the biggest offenders being the U.S., was to print money. As paper currencies declined in value, the price of gold rose.

But 2011 has not fared so well for gold, with prices getting smacked with a weekly double-digit selloff so far. The common culprit has been labeled "rebalancing," where traders who bought gold at the end of the year to show they owned it dumped it in 2011 to book a profit. The tactical trading has wreaked havoc on the gold market.
In January, gold lost 6% of its value, leading many to wonder if the gold bubble had burst. The metal got some help at the end of the month from the political unrest in Egypt, but gold's safe haven bid didn't last. The metal has struggled to find solid footing in February.

Vote: Where will gold prices finish in 2011?


A read of the headlines would make it seem that the good times for gold should continue -- rising food prices, riots, inflation, conflict between North and South Korea, U.S. stimulus and high unemployment. But these factors, for now, have stopped moving the needle. Instead investment interest, which gold desperately needs to break the curse of its triple top, has waned.
The SPDR Gold Shares(GLD) dropped more than 50 tons of gold in January, a third of what the ETF added in 2010. Jon Nadler, senior analyst at Kitco.com, has been warning of a fast and furious exit by traders and hedge funds, which could pummel the gold price.
"I would expect a sell by date in this market could come before the 2011 trading period is over." Nadler predicts that gold could slip to $1,150 an ounce and if that level doesn't hold, gold could drop past $1,000.

Although many gold traders have been conservative over the past few weeks, calling for more downside before a rally, Nadler is in the "bearish" minority.

Big time investor, Jim Rogers, stands behind his long term $2,000 gold price prediction.

"It'll probably be much higher than $2,000 in the [next] decade but maybe even sooner, I don't know. But to me it seems pretty clear that it'll go to at least $2,000. If you adjust the old high back in 1980 for inflation, gold should be over $2,000 now."
Rogers does think that at some point gold will be a bubble but that prices are far from that level, "at the end everybody owns it, everybody becomes hysterical ... [we are] halfway [along in that process]."

Other estimates fall right in the middle. Out of the slew of mining executives I spoke to at the Denver Gold Forum in September of 2010, those from Angico-Eagle(AEM), Eldorado Gold(EGO) and Randgold(GOLD) all predicted $1,500 gold.
Goldman Sachs(GS) has predicted $1,650 an ounce for gold in 2011, although has called for a top in prices during 2012. The company also released a note recently that listed all the reasons why investors shouldn't own gold.
Goldman argues that gold can no longer be considered a consistent inflation hedge and said inflation fears and loose monetary policies were already baked into higher gold prices. If inflation doesn't actually materialize, gold could see more downside. Goldman also goes on to say that gold doesn't fulfill its role of a safe haven asset in an investor's portfolio as tactical traders have made prices more volatile.
Morgan Stanley(MS) has a 2011 gold price target of $1,512 an ounce while JPMorgan(JPM) will now accept gold as collateral.

Gold...
Gold recovered is rallying strongly after establishing primary support at $1320. Twiggs Momentum (21-day) penetration of the descending trendline would suggest another advance. Breakout above $1420 would confirm, offering a target of $1520*.

* Target calculation: 1420 + ( 1420 - 1320 ) = 1520