Replies to post #61976 on Abet Chichi2 (Chichi2)

[DiscoverGold]

stockmen, it will be difficult for Gold to regain traction on the upside at this time. Dan Norcini best described some of the factors involved on this continuous Gold decline:

...With rising interest rates here in the US bolstering the Dollar, the precious metals need some Asian buying to keep things from getting even uglier. This rise in rates, which I think is being closely watched by the FOMC, in conjunction with POSITIVE REAL RATES ( due to the official low rate of inflation ) is not helping gold demand here in the West. Remember, traders will view a strong currency as inhibiting inflation.

The question I still have in my mind is how the Fed is looking at this fall in the gold price and whether it is becoming a concern to them at this point. I do not think it is UNLESS it breaks chart support and REMAINS BELOW THAT SUPPORT for an extended period of time. Spikes below support followed by rebounds in price that occur quickly will not disturb them whatsoever as that can be rightly attributed to market volatility. Low prices however that remain are a more serious signal. Gold is signaling no fears of inflation currently exist. If it sinks further and will not pop back, it will be signaling the potential return of deflationary pressures. That will be a problem for the Fed.

http://traderdannorcini.blogspot.ca/2013/12/gold-mauled-as-bears-growl.html

Best of luck with your investments.

George.

[chichi2]

I own silver, which tends to move faster. notice in my Strategists I still maintain SLV and GLD charts for you, and in Potpourri, I have added the latest of my Gold and Silver Stock charts which are 3 month charts, there are also 5 month charts there from before, and I have a section in sticky charts of Gold, Silver, Palladium, Platinum and copper. most recently Palladium has gone up in the very low cost PAL stock. the net, is the shiny stuff is still important, but gold is in troubles in a deflationary environment that Obama has kept intact by creating a NO growth economy with Fed's NO interest rate near recession for low and middle classes, and downers for seniors.