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 Stocks Crash! Now What?
By: Jordan Roy-Byrne CMT, MFTA

60 Second Snapshot: Gold Is a Crowded Trade
By: Frank Holmes

GOING CASHLESS?? Someone Better Tell The Federal Reserve As Currency In Circulation Reaches New High
By: Steve St. Angelo

This Analysis Will Change The Way You Invest Forever - Part 2
By: Avi Gilburt

Gold Seeker Closing Report: Gold and Silver Gain with Stocks
By: Chris Mullen, Gold Seeker Report

Spot Prices Are Falling, But Premiums Are on the Rise
By: Clint Siegner

GoldSeek Radio: Peter Hug and John Williams, and Chris Waltzek
By: radio.GoldSeek.com

Jack Chan's Weekly Precious Metals Market Update
By: Jack Chan

Golden Icing Now On The Cake
By: Stewart Thomson

What Do The Banks Know?
By: Craig Hemke

 
Search

GoldSeek Web

 
A Gold Trading Idea


 -- Published: Thursday, 19 March 2015 | Print  | Disqus 

By Bob Loukas

Yesterday’s FOMC was bullish for most assets, as the FED indicated it was not ready to beginning raising rates. The FED’s ZIRP policy, designed primarily to encourage lending and speculative asset purchases, is clearly here to stay for a while longer. But for gold, this policy has done little for it over the past 3 years, as speculative money is much more concerned with chasing equity and bond markets higher.

Which is why we should be careful here and to avoid reading into a solitary $20 move on a bullish FOMC day. For starters, the dollar fell by a massive amount, this alone accounted for much of the gold increase. But also more importantly, gold was extremely oversold, being down for 12 of the 13 preceding sessions. Therefore, there was an expectation for gold to move higher yesterday, the asset was setup and ready to rally on almost any excuse.

3-18 Gold Daily

As I outlined with much more detail (premium report) this past weekend, the Cycle timing is simply not right for a sustained rally. A combination of (early) Weekly Cycle timing, gold sentiment, and the COT report, all show evidence to support an Investor Cycle Low that is just a shy too early. I also cautioned members to be on the lookout for a “suckers rally”, and not to confuse it with a new Investor Cycle rally.

So as yesterday’s move higher was expected, it is also likely that gold will continue higher for the coming days and the action to appear convincing. However, as gold recently entered into the final chapter of this Investor Cycle, it is unlikely to have the strength required to get beyond $1,200. Traders should be on the lookout for a peak around the $1,180-$1,200 from which they could short the gold Cycle, because the decline from that peak should be of the “capitulation variety”. The good news is that if we’re incorrect on this Cycle outlook, then gold only needs to exceed $1,223 (prior Cycle high) to prove us wrong.

http://thefinancialtap.com/


| Digg This Article
 -- Published: Thursday, 19 March 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 - 2018



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.