Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver End Slightly Lower
By: Chris Mullen, Gold Seeker Report

Are You Ready For The Next Rally?
By: Craig Hemke

Long Term Patterns in Stocks, Gold and Crude
By: Gary Christenson

Exploration Update: Golden Arrow’s Pescado Project
By: Nicholas LePan, SilverSeek.com

GoldSeek Radio Nugget: Charles Hughes Smith and Chris Waltzek
By: radio.GoldSeek.com

Strap Yourself In - We Are About To See Some Big Moves In Metals
By: Avi Gilburt

Visit the Top Blockchain and Cryptocurrency Power Hubs of the World
By: Frank Holmes

Gold’s Upside Target
By: Przemyslaw Radomski, CFA

Dollar Crisis
By: Gary Savage

What Gold Needs to Do Now
By: Rick Ackerman

 
Search

GoldSeek Web

 
Gold – YAWN!

By: Dan Norcini

 -- Published: Monday, 1 June 2015 | Print  | Disqus 

Another week passes and once again, the word best used to describe the price action in gold is, “YAWN”. As in boring; as in repetitive, as in comatose, as in going nowhere.

Chart20150529134522

As you can see on the intermediate term chart [ Weekly], the Bollinger Bands are going nowhere and the Bandwidth indicator remains perfectly flat, indicative of a market heading nowhere fast.

Price remains below the median line of the Bollinger Bands, which it has done every week since early February with the brief exception of a single week early this month [May].

This comes in spite of the wild claims out of the gold cult that once again – as usual, as can be expected, as is boringly repetitive and predictable – surfaced when gold did manage to put in that strong week earlier this month.

“Gold is off to $2000″, we were confidently told. Yep – same claim as always ever single time gold has a big move higher with the same result.. NADA… ZERO… ZILCH…

What a great racket – get people to pay you for making wild, outlandish, incorrect and thoroughly useless predictions and then blame it all on “price suppression by the feds” when the prediction falls flat on its face.

Those doing this never have to acknowledge how bumbling and inept that they are around the markets while they sucker in another round of victims from which they can milk more money out of.

Here is the reason why gold is going nowhere, wild claims of the gold cult hucksters notwithstanding.

gold open interest

Look at the total open interest in the gold futures contract at the Comex [ futures and options combined]. Which way is that dark line heading? Answer – DOWN. As a matter of fact, this past week’s reading is the lowest since August 2014, which by the way happened to be the lowest level of recorded open interest in the previous 3+ years shown on this particular chart.

What this tells us is very simple – “INTEREST” in gold (that is why the number of contracts is referred to as OPEN ‘INTEREST’) is drying up.

That is also the reason why the large gold ETF, GLD, continues to report a steady decline in its gold holdings. Just this past week, one gold ETF, simply shut its doors for lack of interest.

I have said it before and will say so again – until the momentum based crowd gets interested in gold, it is going nowhere. Value based buyers may be providing a floor of support near $1180 for now, but that crowd in and of itself cannot drive gold sharply higher.

As long as the threat of a Fed interest rate hike hangs over the market, large speculators will be more interested in selling rallies in the gold market. While the current rash of weak economic data has bought gold some time, in that it does not have to compete with interest paying Treasuries as long as interest rates remain in the gutter, the market is expecting the Fed to move on the interest rate front sometime this year. That means gold’s days are numbered unless for some reason we see inflation pressures come out of nowhere and suddenly surge higher.

Lastly, here is an updated chart of the gold price compared to the Ten Year Treasury futures contract. The relationship between the two continues to be very tight.

Chart20150529141011

http://traderdan.com/


| Digg This Article
 -- Published: Monday, 1 June 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.