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.

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

Welcome to BAA_BAA’s Gold & Precious Metals

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

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

Gold target $1,224

Go Jim Sinclair … his personal gold target is $1,224

The TOP 10 REASONS to Hold Gold, Bar None!

The Motley Fools did a really good job of this … The TOP 10 REASONS to Hold Gold, Bar None!

Why You Shouldn’t Expect $1,000 Gold Anytime Soon

Here’s a great article putting forward reasoning why, in a deflationary environment, Gold won’t cut the mustard; so the question is, assuming that it is indeed a deflationary environment, whether inflationary or preferrably for gold bugs ‘hyperinflationary’ environment will follow.

Why you shouldn’t expect $1000 gold anytime soon

The best part about that scenario is deflating prices provide accumulation opportunities as people sell for profits; buying into a bottom followed by inflation driven prices increase thereafter.

Maybe we have a theme worth developing here.

BAA

Linking the golden dots, big seller need big buyer

So the IMF decides to sell 403 tonnes and the World Gold Council is OK with that apparently, because it won’t affect the gold market. Well heck, how could a huge sales like that NOT affect the gold market? Lets try and link some golden dots.

The way to make a huge sales of gold and not affect the market (price) per se is to sell to a single counterparty, hmmm. Who’s buying Gold and more importantly who’s buying a lot of Gold. Ah ha, you got it … China.

Choppy times ahead for Gold?

Choppy times ahead for gold in near term – BMO’s Melek
While gold may be vulnerable to a near-term pullback, BMO’s Bart Melek believes there are long-term motivations to hold the precious metal.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=85418&sn=Detail

How much Gold in your portfolio?

How much gold should be in your portfolio
Financial advisers often suggest maintaining at least some part of one’s investment portfolio in gold as a diversifier, stabilizer and inflation hedge -but how much makes sense?

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84224&sn=Detail

Right time for Gold Mining Stocks?

Why the time could be right for gold mining stocks
There is a correlation between U.S. deficit spending and gold outperforming the S&P 500. This coupled with the Chinese appetite for gold should keep gold and gold stocks attractive to the broader market.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84558&sn=Detail

IMF Gold Sales

ORDERLY SALE ANTICIPATED
IMF gold sales clearance welcomed by World Gold Council
The U.S. Congress’ passage of a bill which would effectively allow the IMF to sell 403.3 tonnes of gold has been welcomed by the World Gold Council which feels the sale will have no impact on the global gold market
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=85262&sn=Detail

… yeah right!

USPOG 180609

USPOG bounced nicely on the 50% fib retrace from April’s low to June’s high; back testing the trendline previously support but now resistance, and at convergence with the 38.2% fib. Still contained within the narrow short term declining trend channel, USPOG should either move up out of the channel at $940 setting up a potential bear trap, or falter at $940 and continue down to test primary support at $870. The psychological resistance / support at $900 should distract, though not neccessarily stop a down move.

What do you think of the smaller chart format?

USPOG wedged between fibs