Time to look at gold again … 
Gold is drifting sideways, trying to decide if it wants to rally or head lower. I’m keeping an eye on it. And now let’s look at a chart of the gold’s doppleganger (in the short-term, anyway), the US dollar … 
More sideways drift. In this case, the dollar looks to be testing overhead resistance, while gold is testing downside support.
Gold is drifting sideways, trying to decide if it wants to rally or head lower. I’m keeping an eye on it. And now let’s look at a chart of the gold’s doppleganger (in the short-term, anyway), the US dollar … More sideways drift. In this case, the dollar looks to be testing overhead resistance, while gold is testing downside support.
Here is more news I’m reading (it’s pretty depressing)
The price of key industrial metals has fallen further over the last four months than occurred during the worst years of Great Depression between 1929 and 1933, according to research by Barclays Capital.
Oil prices will continue to fall during the next 12 to 18 months if OPEC fails to implement “sufficient cuts” and supply stays at current levels
According to the Beige Book, which offers a picture of the economy based on anecdotal evidence provided to the US central bank, “overall economic activity weakened” across all 12 of the Fed districts since the last report in mid-October, which had also offered a grim outlook.
What is being advocated as a Keynesian remedy is in fact the opposite of what Keynes called for in his day. Keynes’ prescription then would lead to a global rebalancing, with the US depending more on internally generated demand and less on its foreign partners (who were defaulting on their government debt). But if it were successfully deployed in the US now, it wold lead to a continuation, of our excessive consumption and China’s underdevelopment of its internal demand.
Job cuts announced in November totaled 181,671, up 61 percent from October and 148 percent higher than November 2007, when job cuts totaled 73,140, outplacement firm Challenger Gray&Christmas said in a report released on Wednesday.
More on this topic
(What's this?)
Gold Demand Exploding Higher!
(Real Wealth - Global Wealth Report, 11/21/08)
Gold - Long Term Thoughts
(Gold Versus Paper, 9/20/09)
Warning on Paper Gold
(Red Hot Energy and Gold - Global..., 9/21/09)
Gold Chart — Gold Tests Support
(Red Hot Energy and Gold - Global..., 10/22/08)
Related posts:
- News and Gold Chart, TGIF Edition If you bought my new gold report, this chart will interest you. It’s weekly chart of the GDX …...
- Fox Business — Talkin’ ‘Bout Oil I’m appearing on Fox Business TV at 1:00 to 1:06 today on the Stuart Varney Show. Stuart’s a good...
- Charts of Dollar and Ultrashort Consumer Serv… Remember how rosy things looked yesterday morning, with the market shaking off bad economic news? Well, that faded in the...
{ 1 comment… read it below or add one }
Sean, You mentioned awhile back that a friend had purchased a gold futures contract with the intent of taking delivery (since the gold supply is drying up). I have heard that contract holders demanding delivery skyrocketed to over
11,000 for the December contract (over 1.1 million ounces). This would require the COMEX to purchase extra gold, since it must hold physical gold in reserve at a set percentage of future contracts. With the short supply, this could drive prices up before
the end of the month. Also, what is your take on the gold “backwardization” of COMEX gold contracts the last few weeks? Contracts for future months are cheaper than earlier months. I have read that this is because many traders are fearful that the COMEX
will default on deliveries, possibly making future contracts worthless. What are your thoughts on these issues? -David