3SOF

Twiggs Money Flow (13-week) holding above zero on GLD signals buying pressure.

Gold tests resistance as dollar weakens

Gold...
Gold is testing resistance at $1420 in response to the weaker dollar and turmoil in the Middle East. Breakout above $1420 would signal a fresh advance to $1520*. A Twiggs Momentum (21-day) trough above zero would confirm.

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

Rising Twiggs Money Flow (13-week) on GLD indicates buying pressure. Again, a trough above the zero line would signal a primary advance.

Gold...

Gold broke through resistance at $1420, signaling an advance to $1520*. The metal is now retracing to test the new support level; respect would confirm the signal. A Twiggs Momentum (21-day) trough above zero would add further confirmation.

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

Gold breakout imminent
Gold...
Gold rallied off support at $1380 and is testing resistance at $1440. Breakout would signal a primary advance to $1500*. Twiggs Momentum (21-day) respected zero, suggesting another advance.

* Target calculation: 1400 + ( 1400 - 1300 ) = 1500

Gold breakout imminent...

The recent dip on 21-day Twiggs Money Flow also respected the zero line, signaling buying pressure.

Gold...
Gold hesitated below $1450 as crude oil weakened and the dollar rallied, but now looks ready to resume its advance to $1500*. Another Twiggs Momentum (21-day) trough above zero would strengthen the signal. Breakout above $1450 would confirm, while failure of short-term support at $1410 would weaken the signal.

* Target calculation: 1400 + ( 1400 - 1300 ) = 1500

On GLD, a 13-week Twiggs Money Flow trough above zero would confirm another advance.

Summary Box: Gold prices whipsaw
Summary Box: Gold prices whipsaw on debt uncertainty, shooting higher then closing lower

Wednesday July 27, 2011, 4:42 pm
PRICE SWINGS: Gold for August delivery went as high as $1,627.90 an before settling down $1.70 at $1,615.10 an ounce.

UNCERTAIN NEWS: Gold trading is volatile because investors are buying or selling based on every headline about the debt debate. If Congress can't reach a deal to raise the debt ceiling by Aug. 2, the U.S. could default on its debt, which would send gold prices higher.

OIL FALLS: Oil prices fell after the nation's oil and gasoline supplies rose, with benchmark crude losing $2.19 to settle at $97.40 per barrel.

Gold prices keep pushing higher, hit new record
Gold prices keep pushing higher, hit new record as investor unease rules markets

The price of gold is streaking past $1,700 an ounce Monday, Aug. 8, 2011, for the first time as investors, beset by worries about debt and slowing global growth, seek safety in the metal. (A

On Tuesday August 9, 2011, 11:58 am EDT
NEW YORK (AP) -- Gold prices pushed to new heights Tuesday as investors digested the possible consequences of the lowered U.S. credit rating and Europe's debt crisis.

Some investors view gold as a safer bet amid rising worries about debt levels of the major economies and tumbling stock markets. Its value, unlike that of a currency, doesn't hinge on whether countries can make their bond payments, or on the vigor of their economies.

In midday trading, gold futures rose $19.50, or about 1 percent, to $1,732.70 per ounce after setting a record of $1,782.50 earlier in the day.

The declining appeal of the U.S. dollar as a safe haven and nervousness about flagging global growth have helped propel gold.

The metal's price has more than doubled since the recession began in late 2007. Its climb accelerated this summer as U.S. lawmakers took a fight about raising the country's ability to borrow money needed to pay debts to the last minute, and Europe's debt crisis threatened to spread to two of its biggest economies, Spain and Italy.

Standard & Poor's last week cut the U.S. credit rating to AA+ from the top-notch AAA because of worries that politicians are too sharply divided to enact significant spending cuts.

The Federal Reserve's policymakers are meeting Tuesday. Investors, fearing the increasing likelihood of a recession, are expecting the Fed may announce new efforts to support the economy. Central bank efforts to boost the economy by pushing down interest rates are already reflected in gold's price, said HSBC commodities analyst James Steel.

The central bank's extraordinary efforts to drive interest rates lower in order to support lending tempered the dollar's appeal as a safe haven. That's helped make gold more attractive to investors.

While gold on Monday topped $1,700 an ounce for the first time, it remains below a 1980 peak when adjusted for inflation. In 1980, an ounce of gold sold for $850, or about $2,400 in today's dollar.

Gold Prices Surge as Equities Continue Selloff...
08/10/11 - 10:28 AM EDT

NEW YORK (TheStreet) -- Gold prices advanced Wednesday as fears of a global recession and a stagnant U.S. economy continued to plague equities markets.

After gold December futures settled at $1743 an ounce and soared to a new all-time high of $1783 during intraday trading yesterday, prices were gaining $30 to $1773 an ounce Wednesday morning. Gold has hit a high of $1777 and a low of $1740 so far today. Meanwhile, the spot gold price was rising by $28 to $1,773, according to Kitco's gold index.

While some traders have taken profits in the short term to cover losses in the equities markets, gold prices have continued to hit a round of highs recently. On Monday, the world's largest gold exchange-traded fund SPDR Gold Trust(GLD) reported its highest daily inflows since May of last year at 23.6 tons, with holdings now just under the all-time high of 1,310 tons seen in June 2010.

After the Federal Reserve pledged to keep interest rates near-zero for at least two years, the Dow rebounded from Monday's market meltdown, shooting up more than 400 points by Tuesday's close.
With stocks plunging back into the red today, investors seem unsure of how to parse the Fed's statement. Although investors welcomed the extra clarity from the Fed, the indication that sluggish growth is expected for a prolonged time period was worrying investors. Volatility in the market remained high with the VIX, commonly known as the fear index, derived from options activity on the S&P, clinging to levels around 40. Heightened uncertainty kept Treasuries and gold as the two safest assets to store money.
However, a report by RBC Capital Markets did note that "today is likely to be quieter than the previous three sessions as the market takes stock ahead of the next move." With panic trades subsiding compared to Monday, the market has been trying to find a bottom in stocks, leaving open the possibility that gold prices could ease.
Meanwhile, silver has not been able to keep up with gold's strong upward trend. Silver prices for September were losing 44 cents to $38.32 an ounce Wednesday.
"Silver may lag here but the investment demand and cheaper price relative to gold should bring attention to investors," wrote Geroge Gero, precious metals strategist at RBC Wealth Management.

Most gold mining stocks and funds were gaining after settling in positive territory yesterday. SPDR Gold Trust(GLD) was rising more than 2%, while Yamana Gold(AUY) was ahead by 1.5%. Barrick Gold(ABX) inched up 0.9%, while Kinross Gold(KGC) dropped 2%.

Gold prices climb on mounting economic concerns
Gold prices climb as concerns deepen about slowing European economy; other commodities mixed


Tuesday August 16, 2011, 3:46 pm
Gold prices moved higher Tuesday as concerns deepened about the slowing European economy.

Economic growth in Germany and France barely budged in the second quarter, according to a new European Union report. That could hurt the broader economy across the 17 countries that use the euro.

The news reinforced concerns about demand for commodities in Europe, which also is dealing with sovereign debt problems in several countries.

Gold for December delivery rose $27 to finish at $1,785 an ounce. The price has risen about 10 percent since Aug. 1, when worries began to mount about slower economic growth in Europe and the U.S.

Investors buy gold because it's seen as a relatively stable asset to hold during uncertain economic times. It's also used as a hedge against currency movements and inflation.

MF Global senior market strategist Rich Ilczyszyn is one of the analysts who believes gold could reach $2,000 an ounce, unless the global economy stabilizes and there is a clearer picture about growth in the months ahead.

"It's perception and it's a fear-based trade and a very emotional trade if you will," he said of gold. "I think at some point cooler heads are going to prevail and you'll probably see traders go back into equities in some way."

Other metals were mixed on the day.

Platinum and palladium, which are used in automobile catalytic converters, rose after the Federal Reserve said factory production increased 0.9 percent in July, the biggest gain of the year. The auto industry accounted for most of the increase.

September palladium rose $10.15 to finish at $756.50 an ounce and October platinum gained $20.90 to end at $1,818.10 an ounce. September silver added 51.2 cents to end the day at $39.819 per ounce.

Copper, which is used in many construction materials, fell after the Commerce Department said July's new home construction dropped 1.5 percent from June to a seasonally adjusted 604,000 homes. September copper lost 3.8 cents to finish at $3.994 a pound.

Wheat prices rose on concerns that the Northern Plains spring wheat crop would fall short of expectations, Global Commodity Analytics & Consulting LLC President Mike Zuzolo said.

About 13 percent of the wheat in Idaho, Minnesota, Montana, North Dakota, South Dakota and Washington had been harvested as of Friday, the U.S. Agriculture Department said. That compared with 31 percent at the same time last year.

About 66 percent of the crop was in good-to-excellent condition, compared with 82 percent a year ago, the agency said.

Wheat for September delivery added 12.25 cents to finish at $7.2475 a bushel, December corn rose 7.5 cents to $7.275 a bushel and November soybeans fell 1.75 cents to $13.495 a bushel.

Oil and other energy products were lower on concerns that demand may wane because of the slowing European economy.

Benchmark West Texas Intermediate crude for September delivery dropped $1.23 to finish at $86.65 per barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil lost 1.15 cents to finish at $2.9326 per gallon, gasoline futures dropped 2.07 cents to $2.8538 per gallon and natural gas fell 9.2 cents to finish at $3.932 per 1,000 cubic feet.

Aug. 17, 2011, 2:52 p.m. EDT

Gold settles at record just shy of $1,800
Venezuela's Chavez announces gold industry nationalization

SAN FRANCISCO (MarketWatch) — Gold futures settled at a record on Wednesday as investors remained nervous about the euro zone's sovereign-debt crisis and weak prospects for global growth.

Gold for December delivery /quotes/zigman/661658 GC1Z -0.05%  gained $8.80, or 0.5%, to end at $1,793.80 an ounce on the Comex division of the New York Mercantile Exchange.

It had earlier traded as high as $1,797.60 an ounce.

Before Wednesday's high mark, gold's most recent settlement had come Tuesday, when the metal ended at a $1,785 per ounce, rising $27 for the session.

Stocks traded higher Wednesday and commodities such as oil also rose.

Support came from the ongoing concerns about the global economy. Also on Wednesday, Venezuela's President Hugo Chavez said he is readying a decree to nationalize the country's gold industry.

The value of gold keeps rising and Venezuela can't allow it to continue to be taken away," Chavez said, according to the state-controlled news agency Agencia Venezolana de Noticias.

Venezuela has as much as $12 billion in gold reserves, Chavez said.

But the bulk of the concerns helping gold move toward a $1,800 settlement remained centered in Europe.

The outcome of Tuesday's meeting between the leaders of Germany and France "was disappointing," analysts at Commerzbank said in a note to clients.

"Even with the intention of creating a joint economic government for the euro zone, it will be difficult to translate the differing views of member states into convincing compromises. Uncertainty thus remains as to how the debt crisis will develop and this should keep the demand for gold as a safe haven high," they said.

Tuesday's gains came after weak economic growth data from Germany and the rest of the euro zone.

Meanwhile, September silver futures /quotes/zigman/704345 SI1U -0.15%   added 53 cents, or 1.3%, to settle at $40.35 an ounce. That was silver's highest settlement in two weeks.

September copper /quotes/zigman/700184 HG1U +1.03%  rose 4 cents, or 1%, to $4.03 per pound.

Platinum and palladium also advanced, with October platinum /quotes/zigman/2304883 PL1V +0.13%  advancing $22.70, or 1.3%, to $1,840.80 an ounce. September palladium /quotes/zigman/2304928 PA1U +2.64%  rose $19.40, or 2.6%, to $775.90 an ounce.

Gold tests $1800/ounce
Spot gold is testing resistance at $1800. A short retracement would indicate that a test of $2000* is imminent.
* Target calculation: 1800 + ( 1800 � 1600 ) = 2000

Gold hits latest record high, near $1,830
Gold racks up latest record high near $1,830 an ounce as fears of recession sink stocks

Thursday August 18, 2011, 6:09 pm EDT
NEW YORK (AP) -- The price of gold hit its latest record high, near $1,830 an ounce, as investors spooked by the prospect of a return to recession sought out safety Thursday in the precious metal.

Gold prices have more than doubled since the recession began in late 2007. They've risen about 19 percent since the beginning of June, as European leaders struggled to keep the debt crisis from infecting the region's major economies and U.S. politicians nearly drove the country to the brink of default, prompting Standard & Poor's to cut the country's AAA credit rating.

Morgan Stanley on Thursday cut its forecast for global economic growth for this year and 2012, saying the U.S. and the 17 countries that use the euro were "hovering dangerously close to a recession."

While gold has hit a series of record highs over the past 2 1/2 months, the Standard & Poor's 500 has dropped about 15 percent, while the dollar, a traditional safe haven during periods of market turbulence and fear, is flat against a group of six major currencies.

The metal's value, unlike that of a currency, doesn't depend on the health of a single country's economy. Its swift rise has made it popular with investors seeking big returns, as well as presumed safety from turbulent financial markets.

On Thursday, for example, the S&P 500 fell 4.5 percent, following a selloff in European and Asian markets. A new slate of reports that pointed to a sharp slowdown in the economy spooked investors.

There was a steep drop in U.S. home sales last month, more people filed jobless claims last week and an August regional manufacturing report was weak. There was downbeat data from overseas.

Gold for December delivery, the most-traded futures contract, settled at $1,822 an ounce, up $28.20, or 1.6 percent. Earlier Thursday it hit $1,829.70 per ounce, a record high.

The metal's price could go higher. BofA Merrill Lynch commodities analyst Francisco Blanch on Thursday raised his price target for gold to $2,000 an ounce. Just a week ago, he'd set a $1,700 target. He cited the trend of central banks in emerging countries switching more of their currency reserves into gold.

"Physical gold is the ultimate collateral because it has no credit risk," Blanch wrote in a note to clients.

Purchases of gold by the world's central bankers more than quadrupled this April through June, compared with a year ago, said the World Gold Council.

President Hugo Chavez of Venezuela said Wednesday that he planned to nationalize the country's gold industry and convert to international reserves. Venezuela will also bring home its $11 billion in gold reserves currently stored in U.S. and European banks.

Chavez's plan alone shouldn't have much effect on gold's price, said George Gero, vice president at RBC Global Futures in New York.

"Venezuela's not a major gold producer. This gold has already been mined, stored and allocated wherever they're holding it. It's not changing the markets."

But Venezuela's move to nationalize its gold industry could have a "psychological impact" on gold prices, Gero said. If investors fear that other big commodity exporters in South America will follow in Venezuela's footsteps, possibly limiting exports and constricting the supply of the metal in world markets, that could boost the price.

And that's going to affect consumers. The metal is more than just a currency substitute or an investment opportunity. It's also a material used in industrial products and by consumers. With every fresh high the metal notches, the more consumers will have to pay for engagement rings and gold crowns for their teeth.

Big U.S. jewelry chains already raised prices this summer, citing the rising costs of gold and diamonds.

Despite gold's big run-up, it remains below its 1980 peak when adjusted for inflation. Then it was worth $850 an ounce, or about $2,400 in 2011 dollars.

Venezuela to withdraw billions in gold reserves
Moving $11 billion in gold reserves to boost Venezuela's risk for investors, analysts say

On Thursday August 18, 2011, 7:07 pm EDT
CARACAS, Venezuela (AP) -- Analysts say Venezuela's decision to pull $11 billion in gold reserves out of U.S. and European banks will make investors see the country as riskier.

President Hugo Chavez has announced the plan while also saying the government will nationalize gold mining operations in the South American country.

Economist Jose Guerra says the decision will have an impact on "the perception of risk" for investors as the gold is moved to Venezuela, where there are fewer controls.

Diego Moya-Ocampos, an analyst with IHS Global Insight in London, says the decision to pull the gold reserves out of U.S. and European banks is "going to affect transparency, and it's going to affect Venezuela in terms of credibility in international markets."

Gold hits a new high as Wall Street swings wildly
Gold careening closer to $1,900 an ounce as Wall Street swings wildly, uncertainty rules

Friday August 19, 2011, 4:42 pm EDT
NEW YORK (AP) -- Investors flocked to gold Friday, sending it to the latest of a series of records, as fears about recession in the world's major economies infected financial markets.

The metal soared as high as $1,881.40 an ounce. It's been on a tear this summer, rising more than 15 percent in August alone. In the same three weeks, the Standard & Poor's 500-stock index has fallen about 12 percent.

Gold logged its biggest weekly gain since February 2009, according to FactSet data.

As an investment, the metal has climbed because of investors' concern about the uncertain state of the global economy, diving stock markets and moves by central banks around the world to weaken their currencies.

Central banks in developing countries are also swapping out major currencies for gold in their reserves, driving up demand for the metal.

At this point, analysts say more than fear is driving gold higher. The simple fact that it has kept rising in an otherwise turbulent market is part of the metal's appeal. The recent surge "lacks a lot of explanation," said Jon Nadler, an analyst for Kitco Bullion Dealers, and that, to him, signals danger of a deep reversal as it approaches $2,000 an ounce.

But analysts have been predicting a top in the market for months only to see gold's climb accelerate.

The last time gold was worth less than $1,000 an ounce was October 2009. It gained steadily from there, and then burst higher this summer, crossing $1,600 an ounce for the first time in mid-July; three weeks later it was worth more than $1,700 an ounce, and 10 days later, it passed $1,800 an ounce.

Gold for December delivery, the most actively traded contract, settled up $30.20, or 1.6 percent, at $1,852.20 an ounce.

Still, these record highs remain below gold's 1980 peak of $850 when adjusted for inflation; that equals about $2,400 in today's dollars.

That record could be knocked out if investors keep betting that gold will protect them if the U.S. and Europe fall back into recession, which could sink stock prices.

Several major banks and economists have recently sounded warnings on the risk of a new downturn.

Morgan Stanley on Thursday cut its global economic growth forecast for this year and next, saying the U.S. and the 17 countries that use the euro were "hovering dangerously close to a recession."

JPMorgan Chase and Citigroup followed suit on Friday.

JPMorgan Chase cut its forecast steeply for growth in the U.S., the world's biggest economy, to a measly 1 percent in the last three months of the year from an already weak 2.5 percent.

"The risks of a recession are clearly elevated," said JPMorgan economist Michael Feroli.

Citi thinks weak growth will last a long time. It expects the U.S. economy to grow a tepid 2.1 percent next year, not nearly enough to add the jobs needed to reduce unemployment.

So what would $2,000 an ounce gold mean for shoppers? Gold is used in industrial products and mainstream consumer goods. With every fresh high, consumers will have to pay more for everything from engagement rings to crowns for their teeth.

Big U.S. jewelry chains already raised prices this summer, citing the rising costs of gold and diamonds.

The surge in gold is causing "major problems" for jewelry sellers, Kitco's Nadler said. Stores are asking designers to make different kinds of pieces that use less gold, swapping in steel or palladium.

And the surge in gold is affecting gold-producing countries, even minor exporters.

Police in Guyana said Friday that the surge had triggering killings, robberies and other crimes across the South American country. Venezuela said earlier this week that it was nationalizing its gold industry and bringing home its $11 billion in gold reserves.