Gold price to go steady, dips imminent?

DiggerUK

When precious metals tanked in the bonfire of the commodities this last May, a major impetus were the margin calls that forced the speculators hands.
If the high gold price we are seeing at the moment is attributed to speculators in any shape or form, then the margin calls on gold will smoke them out.

"U.S. exchange operator CME Group said late Wednesday it is raising the margin requirements for trade in a wide range of gold products, effective Thursday."

How this affects me being forced to eat humble pie, is for the moment, unclear.
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IronWolf

DiggerUK wrote: »

And what exactly was your cunning investment plan with the paper you received at Easter?
Selling at the price you did, does not exactly demonstrate a good call does it.
Not related to Gordon Brown are you!
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Cash can be used to actually buy things of use, as opposed to gold which has absolutely no use or utility.

This whole gold bubble reminds me of the dotcom days, people paying huge prices for something that has no use and generates no return.

chrismac1

Having had some fun in the past 2 months with a long gold position, what we are seeing now looks very much like the chart of 1980 to me. The rising channel which has contained gold since 2003 has been broken decisively, looks to me like a terminal blow-off.

chrismac1

Took a big gulp and went short at 1782.4 at 1133 GMT.

chrismac1

Stop loss 1820.0, happy to throw in the towel if the gold bugs drive on to a new high.

DiggerUK

chrismac1 wrote: »

......what we are seeing now looks very much like the chart of 1980 to me...... looks to me like a terminal blow-off.

If it is a blow off, I wouldn't look for it being terminal. With currencies all on a one way ticket to Palookaville, it seems that price of gold (pog) can only trend up long term. Get unemployment down, manufacturing up and inflation down, then you may see pressure on pog to stabilise or dip. But don't hold your breath.
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edinburgher

NO, invest in lettuce...95 percent of some species of lettuce, by weight, is water

I hear that some 100 percent of some species of water, by weight, is water

Ark_Welder

The Swissie.

...gold may only trend...

chrismac1

All I am saying is - take a look at the last part of the chart above where the price ramps up above 1,000. Then Google "gold chart 1980". I am showing my age here, but back then just like now the gold price was in the news, the dollar was a "busted flush" and so on. Whether we saw the peak yesterday who knows, what I am confident about is that there is a lot of hot money in gold right now, money which probably can't afford the margin calls in many cases. As I say, the steady uptrend since late 09 has been very nice but lately it's got way out of kilter. When the end of this gold bull market comes it will not be pretty, the price will spike down even faster than it's spiked up.

ed123_2

.....I assume the supply of physical gold is tightly controlled.....to what degree does this affect the spot price?