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NZPOG continues to loose air …

I’d have to say NZPOG is the most tedious chart in my collection, this whole winter (southern hemisphere) it has lost any sense of volatility as the USPOG moves have been negated by the USD, translating into an NZD Gold price that just leaks value progressively. Today it’s dropped again beneath a horizontal support, though we can start to see a narrow downwards channel forming. Gold bugs holding this metal in Kiwi$ will not like the prospects of a rising USD and falling USPOG, which could translate into more sideways tedium.

USPOG slumps

This is hard to ignore, when USD gets some upside and USPOG slumps and hits perfectly the 50MA (low) and closes right on the rising mid-trendline. Clearly USPOG is showing further weakness here after having failed on numerous rallies since the all time $1033 high. You’ve got to factor in a potential for at least $930 and under that, the recent low of $865. Alternatively, a rally above $971 would signal $990, though IMHO less likely.

USD a Sick Puppy?

Hell NO, USD is a sick Rottweiller, not a puppy! This currency behemoth is shedding value faster than you can say “the greater depression”!

Currently staring into the abyss, USD should find support here-abouts at the 61.8% fib retrace, but keep in mind this is a retest of the June lows and there is a whole swag of sloshy USD’s in the system. All indicators are weak and this powerful down channel isn’t letting go easily.

USD’s chart seems a perfect example of fiat currency destruction, robbing USD holders of their purchasing power as the US continues it’s successful exportation of inflation. Whoa betide the linked currencies, especially the powerless trading currencies as they conversely rise.

USPOG looks toppy here

I’m always wary of a rising DOW and rising USPOG; it’s a sign of excess USD money in the system looking for a home, confirmed by continued falling USD as it devalues. Right now though, USPOG has a toppy look about it, turning over perhaps. Downside should be a small decline back to the 50MA and anotehr shot upwards to again try for $1000. Continued decline in USD will help this along and there’s plenty to suggest USD is staring into an abyss. Will humungous vested interests be enough to prop up USD? Probably.

$NZ Price of Gold; Thin end of the Wedge

Gold in $NZD continues working it’s way into the thin end of a large wedge formation, moving sideways in a very narrow price range, caught between the forex effect of a falling USD, rising NZD and rising $US Gold price (USPOG). This is NOT price action, this is a sleeping tonic. Yawn.

Thanks to all my Twitter followers

Hi folks, I just wanted to say a huge thanks to all my Twitter followers and for your interest in checking out this website from time to time. I like to post about Gold & precious metals, price chart analysis, news and my own views. I leave all my posts open to public view and comment, I really appreciate getting comments.

I hope you find my website useful and informative.

regards
BAA

Daily Reckoning

Now folks, for a good daily contrarian read and downright to the point analysis of markets including precious metals, I do recommend checking out the Daily Reckoning.

There’s always a few ‘nugget’s in each communication; here’s an example:

–Check out the chart below, courtesy of our old friend Chris Weber. We are often asked how the Aussie dollar price of gold can go up when the Aussie dollar itself is getting stronger relative to the U.S. dollar. Chris shows that all currencies have been declining against real money since 2000. It’s a case of competitive devaluation.

There’s a link in my Blog side bar. The thing I enjoy the most is the daily email updates. You gonna love these guys.

Colin Twiggs Trading Diary

Recommendation

Sign up for Colin Twiggs FREE email Trading Diary updates. I highly recommend them, Colin has superb concise chart analysis.

Why You Should Own Dollars Today, Gold Tomorrow

Richard Russell says “The way the world is going, ‘gold will be the last man standing.’ Gold will be wanted because unlike everything else, gold cannot go bankrupt. Gold has no debt against it, gold is not the product of some nation’s central bank. Gold is pure intrinsic wealth. It needs no nation to guarantee it. Gold is outside the paper system.”

Check out his whole article here

The Gold Market’s Tech Cues

Brad Zigler writes “Fundamental analysis uses economic, political and environmental data to forecast future price movements, while technically derived predictions rely upon price patterns and changes in market volume. Commodity traders often use “the technicals” as well as fundamentals when making market decisions.”

Check out the rest of his article here

The Next Major Financial Crisis

From Seeking Alpha “Warren Buffett doesn’t see the “green shoots” Ben Bernanke and other bullish investors have spoken of in recent months. In fact, the billionaire investor believes the economic picture will grow darker before things improve.

“Everything I see about the economy is that we have had no bounce,” Buffett told”
click here for the whole article

The Death of Gold?

From Seeking Alpha “This is the 1980 spike revisited, but at a much higher inflation adjusted price. How high? There are as many guesses as their are commentators – $2200, $5000 or more? This is the end game that many goldbugs have been waiting for, when they can shout “we won”!

But will they have won? I would argue not. I would argue that such a scenario would actually be the death of gold.” Click here for the whole artcle

Free newletter; Elliottwave.com

Try this free email newsletter, if you like it join Club EWI or subscribe to one of their many excellent publications. I find it and their subscription services to be a very useful to balance the perma bulls views that proliferate on the internet. You don’t have to believe it per se, but you’d be foolish not to take it into account. JMHO.

Elliottwave.com free newsletter

Try this also, their Club for FREE e-books and reports, well worth the investment … especially for bugs, their FREE 40 page Gold & Silver e-book

Gold miners, “window of opportunity”

Mineweb – Junior gold miners seeing windows of opportunity
Few sectors have been as hard hit as the junior miners by last year’s market collapse but capital raising opportunities are occurring, particularly in the gold sector

Pav Jordan points out that falling stock prices are only bad news if you hold on to them

When are Miners a good buy?

Mineweb – Miners bruised, but standing firmSince 3 June, when global mining stocks touched eight-month highs, the heaviest net selling has been seen among listed primary silver miners, followed by specialists in nickel, copper, potash, gold, and platinum.

Barry Sergeant points out the opportunity

One good reason for selling 400+ tonnes of Gold

Fancy that, I was browsing around and found Mish, and he has this article he wrote. Of the three reason given, I think 3) is compelling because it is about a buyer of the IMF’s gold … you guessed it, Mish thinks China too. Nice one Mish.

http://globaleconomicanalysis.blogspot.com/2009/06/us-approves-imf-gold-sales-what-does-it.html

China should buy Gold as USD hedge

China should buy gold as falling dollar hedge – China CP research
A senior China Communist Party researcher fears for future of dollar and says the country should buy gold, natural resources, U.S. Land and wants IMF’s SDR reformed to give yuan a 20 percent share.

Author: Zhou Xin and Alan Wheatley

… read the rest of the article here

Deflation, Inflation, Hyperinflation

An excellent article from Simon Botherway;

“Weimar style inflation threatens”
OPINION: It would be unthinkable for the Reserve Bank, a fiercely independent central bank, to print money to devalue the Kiwi, right?

Nope, wrong. It will reluctantly be driven there by the actions of major global central banks and governments, whose prevailing anti-deflationary policies are exporting deflation to us (amongst others). Those same policies are also sowing the seeds of eventual serious inflation. Here’s how it will unfold.

Deflation is currently considered a far greater threat to the global economy than inflation due to two key factors.

… read the rest of the article here

Whiskey & Gold

Giving money and power to government is like giving whiskey and car keys to teenage boys.

~ P. J. O’Rourke