Thursday, May 08, 2014

US Dollar Dives Below 79.00 - How Long Can They Keep Gold Down? GLD GDX TNR.v MUX NG ABX

  US Dollar dives this morning and is breaking down the all-crucial 79.00 line in the sand. At the moment of writing we have 78.94. Our rhetorical question of the day is how long manipulation can keep Gold down in this environment? Now yesterday's attack on Gold can be put in the new totally dramatic perspective of today's US Dollar Melt Down.

  "US Dollar today is in a total meltdown mood and is holding just a notch above the psychologically crucial 79.00 level at 79.09 now. Gold is moving between 1,300 and 1,317, which was tested yesterday. The both levels are crucial as we have discussed before. Move above MA50 at $1,317 will ignite the new Rally and short covering will provide the fuel for the launch of Leg Up Two in this Gold Bull market."

Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX

  CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article. 
  Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. More."

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