Rick Ackerman and Technicals
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It is to me, Peter.
Nothing can seem to move gold right now Peter. However when the dollar does start moving down maybe investors will start putting their money into the PM sector…
At $24.12 right now, GDXJ looks like a buy.
It just went down and tested the 55 ema on the 60 minute chart at 23.88 —to the penny.
It’s holding, so far, currently at 24.03.
What is strange is the dollar. For me, gold is going to launch pad, and than when dollar back down, a I will say: Mr. Sulu, one quater impulse power…
GDXJ has now been to 23.80 —very close to the 55 sma at 23.78. I still have no sell signals on the 60 minute chart.
Many might disagree, but we could easily see a situation in which the dollar continues to outperform all other currencies while gold outperforms ALL currencies.
It is only possible for gold and the dollar to go up together because the dollar’s “value” is only measured by other currencies.
http://en.wikipedia.org/wiki/U.S._Dollar_Index
Great point Matthew. Over the past few months – even the past half year to a year – gold has preformed well when valued in other currencies. They at least understand the value of holding gold rather than then expanding currencies.
Matthew… I was thinking the same the other day if China/Russia start redeeming USD for commodities + people in other countries who see gold can help preserve their wealth….there could be enough equilibrium to support your case… or at least put a firm floor on gold around $11xx.
I know China is doing it. I know China is acquiring a lot of hard assets. They also changed most of their long term bonds to short term bills. It is not in the amount large enough to suppress dollar yet.
Hi Lawrence, thanks for sharing… all I rely on are from some source like Koos Jansen’s research about gold imports in/out china…. may I ask if your source is something more special than that or you are referring to the same kind of source… Thanks.
Al, every time you say you are going to stand on the sidelines I cannot help but feel its a contrary indicator and my impulses are to run in the opposite direction. 🙂
About the dollar…we had our run as far as I can see. At least for now. The consumer was fortified for the Christmas season with quite a significant boost in buying power and in conjunction with the declines in energy we saw discretionary income rise at a key point. It is afterwards that matter now and Wall Street will have its go at the longs who will get eaten alive if they are not cautious with levered bets. You know…..the usual once everyone is leaning on the heavy side of the boat.
Rick, how about gold? Dollar is rising and gold stuck side-ways, is it a bullish signal?