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Wednesday represents a healthy consolidation.

Big Al
August 28, 2013

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Discussion
19 Comments
    Aug 28, 2013 28:58 AM

    Well, gold hit $1430 this morning and therefore Rick Ackerman’s 1428 target has been well and truly reached after his 1411 target was previously reached and his 1358.090 target was exceeded.
    Actually, I think 1428 and also 1411 (approx) were targets of inverse head and shoulders patterns on the gold chart. 1430 was also the top in late 2010.
    Gary Wagner on Kitco has been talking about this as minor wave 3 in wave 1 up on gold. Maybe minor wave 4 might be a a small correction herfrom 1430 and then minor wave 5 could take it to 1530 when there might be a bigger correction from that major resistance?
    Fascinating to watch! Gold is now well over 1000 Euros and also over 900 pounds sterling again (but not yet at 1000 GBP).

    Aug 28, 2013 28:17 AM

    Gold should stay stable. Great news. We have a lot of geopolitical turmoil in front of us so if gold can just hold its own I will be happy.

    Aug 28, 2013 28:31 AM

    Grandich once again demonstrated why he is one of the truly few honest market commentators who not only takes credit for accurate calls, but also the ones that fail to materialize. I remind ourselves what it was like when gold was barely over $1200. I don’t know of anyone who stood up and said it will never go below that level again in his or her lifetime. Rest assured the boo-birds would be all over him if it did. Bravo Pete for yet another great gold call.

      Feb 03, 2014 03:31 AM

      I thought I’d have to read a book for a disrcveoy like this!

    Aug 28, 2013 28:39 PM

    September Song III

    As we get closer to the end of September gold continues to show some promise.
    But is it too little too late?

    I said there can be no more excuses for gold and so far gold has been rallying.

    The first target of $1350 was taken out and recently the second target $1400 has been breached.

    I said if gold takes out $1400 it might be a quick run up to $1500.

    However this does not look like the case. The price action in gold today was not good. Silver even turned negative.

    I am reserving my excitement until (and if) we take out $1500.

    This will be stiff resistance.

    Until then this could just be another failed rally in a long series of them.
    I will remain very cautious.

    I know I sound overly pessimistic but after these last two years I can no longer afford the luxury of brave optimism and reckless hope.

    I am sticking to my guns. If by the end of September gold is not $1500 I am selling out…

      Aug 28, 2013 28:45 PM

      Everyone has to do what they have to, but I have to ask, what sector looks more promising at this time either technically or fundamentally. For me, there is no place for hope or optimism, what matters is what sector makes the most sense technically and fundamentally.
      Your rigid decision to sell if the market doesn’t do as you wish, when you wish, is nothing to be proud of. It is misapplied discipline. You have held through the absolute worst and are about to be rewarded big if you don’t keep focusing on the recent past.

      Gold is short term overbought, so the current action is good. If gold were to go straight to $1500+ like you want, it would become extremely overbought, which would just increase the likelihood of a bigger price retracement. Gold is showing plenty of strength and is still just 1% off of today’s high. I think it will go above $1450 before it consolidates recent gains further. Everything looks very good.
      Just my opinions.

        Aug 28, 2013 28:52 PM

        An opinion which I happen to agree with!

      Aug 28, 2013 28:54 PM

      Gotta do what you gotta do!

    Aug 29, 2013 29:33 AM

    What sector looks more promising than gold? I can’t think of one. But I don’t want what’s promising, I want what delivers. Just like racing, the public, the losing wagers (see I say here the losing wagers, and not the losers) always play the horses that should win. Anyone can determine very easily what should win. That’s the key. They usually don’t win. Gold is down another $8 today, looks like a retest of $1400 in the cards. All of a sudden today’s data is bearish for gold,crevices GDP, jobless claims. No we go back down. It is the same old same old. Do I think there is a better sector than gold? I repeat no. But in my mind it time to start putting money to work. Invest in a business, buy rental property, buy a franchise…money needs to be put to work. Money just sitting there earning no interest or dividends and not appreciating is not the place to be. Most promises never deliver…

    Aug 29, 2013 29:40 AM

    Gold is now down $11, oil is backing off, This could have been nothing more than a knee jerk reaction to Syria. When that resolves itself gold and oil go back down. Add in the surge in GDP and a September taper and gold goes all the way back to $1180.

      Aug 29, 2013 29:55 AM

      You’re jumping the gun a bit, James. Gold hasn’t even broken its young uptrend and is a long way from taking out the previous low at about $1280. Even if 1280 fails, the trend won’t turn bearish unless $1179 also fails.
      Short term predictions are the most difficult kind to get right, so lets call them guesses. My guess is that the $1350 area will hold. The Dow is bouncing from a daily oversold reading, but the weekly chart points down. This rally will get sold and the gold/silver sector will resume their rise.

    Aug 29, 2013 29:18 AM

    $ is now rallying strongly and has more than nine lives. Time will tell…

      Aug 29, 2013 29:47 AM

      Interestingly enough so is gold as of this moment!

        Aug 29, 2013 29:07 AM

        Remember Al, when gold rallies in terms of the $, the $ is falling in real value. It does not matter if it is rising in terms of other currencies by simply falling less.

          Aug 29, 2013 29:39 PM

          Yep, usually.

    Aug 30, 2013 30:01 AM

    Gold gave up $1400 without a fight. Silver dropping hard. Same pattern.

      Aug 30, 2013 30:13 AM

      Not exactly, the price is currently heading back up.

      Feb 03, 2014 03:20 PM

      A rolling stone is worth two in the bush, thanks to this artleic.