Japanese send gold through the 'clouds' -
Monday, 15th October 2007
Gold has roared to a fresh 28-year high of $756 (£371) an ounce on the fears of global currency disorder and a surge of buying by Japanese investors using exotic trading signals.
Traders reported a sudden of burst of activity on the TOCOM gold futures markets in Tokyo as the price broke through the psychological barrier of 3,000 yen (£12.49) per gramme, the measure used by the Japanese to trade gold.
The country's irrepressible grannies and housewives rely heavily on Ichimoku 'cloud charts', which have issued a powerful buy signal in recent days.
John Reade, head of precious metals at UBS, said the Japanese can be a major driver of the gold price once they step in. "Japanese buying can come out of the blue, but it is too soon yet to tell whether they are about to take over the gold market. When the Japanese public move in with reckless abandon, everybody else gets out of the way. They can be the last to join the rally," he said.
The fresh interest in gold comes as the yen renews its relentless slide, hit by signs that the economy may be tipping back into deflation after the housing collapse over the summer. Housing starts fell 23.4pc in July and 43.4pc in August as new laws came into effect.
The Bank of Japan has signalled that it will keep interest rates at 0.5pc for the forseeable future, inviting funds to step up borrowing in Tokyo to chase higher yields elsewhere through the global "carry trade".
Rising inflation across China, India, the Middle East, Eastern Europe, and Latin America have all created the backdrop for a major move in gold.
Citigroup said a global "reflation rally" caused by cuts in US interest rates could push prices above $1000 an ounce.
UBS has upgraded its long-term forecast, but is turning cautious for now as the optimism barometer hits the ceiling.
"The net long positions on the US futures markets are at all-time highs. They have been at extreme levels for four weeks and when that happens you can be sure there will be a correction. It could be any time now," he said.
Ths Swiss bank is the world biggest manager of funds for the super-wealthy and is closely watched by gold experts. It timed the latest rally perfectly, issuing a "table-thumping" buy alert to clients on 21 August just as gold began a surge of $114 an ounce.
Ichimoku Kinko charts look impenetrable to westerners. Nicole Elliott, a technical analyst at Mizuho, said their unique features is to look both forwards and backwards.
"The Japanese started charting rice futures in the 1700s.. They are streets ahead of us. I use Ichimoku charts all the time, and wouldn't be without them. You can't even begin to trade the dollar-yen otherwise," she said.
"What you can see on gold is that it closed last Friday above technical uber-resistance, telling anybody still hesitating that it was time to jump in. Even so, we like the platinum group metals best. Platinum has reached an all-time high of $1428 an ounce, and palldium looks even better. If it closes above $380 an ounce, it is going to fly," she said.
Stay up to date with Telegraph.co.uk's news and views at www.telegraph.co.uk/business
Gold LT doing good but NXG LT doing better -
Got NXG Gold for fiatz$peanuts -
Well, what better Au treasure can you find? -
Imo. Tia.
God Bless
the Mission is to help U to see the top T -
http://investorshub.advfn.com/boards/board.asp?board_id=3041
http://investorshub.advfn.com/boards/board.asp?board_id=5404
Monday, 15th October 2007
Gold has roared to a fresh 28-year high of $756 (£371) an ounce on the fears of global currency disorder and a surge of buying by Japanese investors using exotic trading signals.
Traders reported a sudden of burst of activity on the TOCOM gold futures markets in Tokyo as the price broke through the psychological barrier of 3,000 yen (£12.49) per gramme, the measure used by the Japanese to trade gold.
The country's irrepressible grannies and housewives rely heavily on Ichimoku 'cloud charts', which have issued a powerful buy signal in recent days.
John Reade, head of precious metals at UBS, said the Japanese can be a major driver of the gold price once they step in. "Japanese buying can come out of the blue, but it is too soon yet to tell whether they are about to take over the gold market. When the Japanese public move in with reckless abandon, everybody else gets out of the way. They can be the last to join the rally," he said.
The fresh interest in gold comes as the yen renews its relentless slide, hit by signs that the economy may be tipping back into deflation after the housing collapse over the summer. Housing starts fell 23.4pc in July and 43.4pc in August as new laws came into effect.
The Bank of Japan has signalled that it will keep interest rates at 0.5pc for the forseeable future, inviting funds to step up borrowing in Tokyo to chase higher yields elsewhere through the global "carry trade".
Rising inflation across China, India, the Middle East, Eastern Europe, and Latin America have all created the backdrop for a major move in gold.
Citigroup said a global "reflation rally" caused by cuts in US interest rates could push prices above $1000 an ounce.
UBS has upgraded its long-term forecast, but is turning cautious for now as the optimism barometer hits the ceiling.
"The net long positions on the US futures markets are at all-time highs. They have been at extreme levels for four weeks and when that happens you can be sure there will be a correction. It could be any time now," he said.
Ths Swiss bank is the world biggest manager of funds for the super-wealthy and is closely watched by gold experts. It timed the latest rally perfectly, issuing a "table-thumping" buy alert to clients on 21 August just as gold began a surge of $114 an ounce.
Ichimoku Kinko charts look impenetrable to westerners. Nicole Elliott, a technical analyst at Mizuho, said their unique features is to look both forwards and backwards.
"The Japanese started charting rice futures in the 1700s.. They are streets ahead of us. I use Ichimoku charts all the time, and wouldn't be without them. You can't even begin to trade the dollar-yen otherwise," she said.
"What you can see on gold is that it closed last Friday above technical uber-resistance, telling anybody still hesitating that it was time to jump in. Even so, we like the platinum group metals best. Platinum has reached an all-time high of $1428 an ounce, and palldium looks even better. If it closes above $380 an ounce, it is going to fly," she said.
Stay up to date with Telegraph.co.uk's news and views at www.telegraph.co.uk/business
Gold LT doing good but NXG LT doing better -
Got NXG Gold for fiatz$peanuts -
Well, what better Au treasure can you find? -
Imo. Tia.
God Bless
the Mission is to help U to see the top T -
http://investorshub.advfn.com/boards/board.asp?board_id=3041
http://investorshub.advfn.com/boards/board.asp?board_id=5404
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