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StackerKen
1st July 2010, 09:21 AM
I guess I still know nothing about the PM market.

And I am no doubt gonna show my ignorance here

I thought Gold was suppose to be a hedge against the falling dollar.

Yet today...The dollar is wayyyy down....and so is gold.


WTF?

joe_momma
1st July 2010, 09:27 AM
This is a blip - Euro weenie banks and investors are scrambling to cover the liquidity gap (particularly Spain's failed rollover) - they need Euros so they're moving out of the dollar on FOREX, selling stocks, and gold.

This is a "cover your hiney" move - after the charade ends in a couple of days we'll watch the Euro tank as the collapse of the PIIGS becomes (even more) evident. (The Chinese forecast of a decrease in Q3 for exports/imports means Euro countries are in trouble).

Naturally, i bought some more gold last Friday - just before the $50 drop - - AAAAUUGGHH!

:boohoo

Plastic
1st July 2010, 10:11 AM
Would'nt it be awesome if they are all selling their paper in order to buy physical?

Dreeeaaaamm, dream dream dream...... :P

gunDriller
1st July 2010, 04:08 PM
I guess I still know nothing about the PM market.

And I am no doubt gonna show my ignorance here

I thought Gold was suppose to be a hedge against the falling dollar.

Yet today...The dollar is wayyyy down....and so is gold.
WTF?


http://www.zerohedge.com/article/what-hell-was

the Euro shorts - people betting on the "safety plays", dollar and gold - took it in the pants today.

the US $ fell 2.4% against the Euro. i guess gold fell 3%+ vs. the dollar.

so gold fell 5.4%+ against the Euro.

just a strange one day "well maybe the Euro isn't so sick after all" type day. plus i'd bet HSBC was hammering away at gold with their naked short positions, their Standard Operating Procedure is to hammer harder when there are market events which are gold-bearish.


so basically, people betting against the Euro took it in the teeth today, and were forced to cover positions, which added fuel to the fire. plus regular old HSBC gold price suppression.

God knows what will happen tomorrow. I have a feeling that BP's eventual bankruptcy will not be Euro-bullish, whether it goes bankrupt for real, or the Euro governments prop it up.

Saul Mine
1st July 2010, 07:15 PM
Rule 1: Prices go up and down.
Up as well as down. Down as well as up. Get it?
Rule 2: The big money is made in the big move.
A daily or even weekly or even monthly fluctuation is a small move. You should have bought back in 2002.
Rule 3: Spot prices only relate to buying.
That's because you shouldn't be planning on selling until the big move is done. Then it will be time to invest in a different market.