LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

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

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

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
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 - 2019



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


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.