Gold Breaks MAJOR Ascending Trend Line

[20Mil]

Gold has now broken the $1645 level! , Next area of interest is $1625. If that level breaks then $1589 is in the cards. Next is $1647 and then below that is my mid-term target of $1526.

What if $1,526 is broken and confirmed? Well then watch out below as Gold will fall into the abyss heading lower down to $1,310 or so but that is pure speculation at this point.

I expect $1,625 to hold and possibly provide a bounce up to test the ascending TL again after which a further decline to $1589 and then eventually $1525 in the coming months.

Gold Chart - Areas of support

Gold Chart (2)

[dontlop]

ive never seen such gains in the gold market without it ending up in a bubble that burst .

[20Mil]

One more chart showing Gold from a Weekly perspective.

As you can see It has failed to make new highs and is actually forming "Lower Highs" on the Weekly chart possibly following it's new Downtrend to suggested levels of support mentioned in my previous post.

Gold Chart - Weekly

ive never seen such gains in the gold market without it ending up in a bubble that burst .

I agree with you that Gold is just another bubble and like all bubbles it will end up doing only one thing in the end....POP! LOL :D/>/>

Edited February 14, 2013 by 20Mil

[willy1der]

One more chart showing Gold from a Weekly perspective.

As you can see It has failed to make new highs and is actually forming "Lower Highs" on the Weekly chart possibly following it's new Downtrend to suggested levels of support mentioned in my previous post.

Gold Chart - Weekly

I agree with you that Gold is just another bubble and like all bubbles it will end up doing only one thing in the end....POP! LOL />/>

Hey 20Mil, if these dinar were to pop soon what would you recommend? I was thinking about silver and gold but it sounds like it isn't the route to go. Mind you I know nothing about this stuff, investing, precious metals and what have you. Thanks in advance, willy1der/pappy

[dontlop]

THE only good thing about the economy right now is .. theres only one bubble . thats precious mettals ..i see a burst of that bubble coming .. its just my opinion .

[C.H.]

Gold has now broken the $1645 level! , Next area of interest is $1625. If that level breaks then $1589 is in the cards. Next is $1647 and then below that is my mid-term target of $1526.

What if $1,526 is broken and confirmed? Well then watch out below as Gold will fall into the abyss heading lower down to $1,310 or so but that is pure speculation at this point.

I expect $1,625 to hold and possibly provide a bounce up to test the ascending TL again after which a further decline to $1589 and then eventually $1525 in the coming months.

Gold Chart - Areas of support

Gold Chart (2)

Very good analysis that is a very strong triple top up there at the 1790 area have been short for quite some time now.

[20Mil]

Hey 20Mil, if these dinar were to pop soon what would you recommend? I was thinking about silver and gold but it sounds like it isn't the route to go. Mind you I know nothing about this stuff, investing, precious metals and what have you. Thanks in advance, willy1der/pappy

It's really hard to recommend any type of investment without knowing a person's risk appetite or their financial goals.

Passive Income is the way to go but finding the right investment vehicles is the tricky part. Dividend stocks are good. Real Estate can be good if somebody wants to be a little more hands on. Precious metals is a good hedge against inflation, nothing more and nothing less.

Managed FOREX Accounts are good - Assuming you have found the right trader / asset manager.

Your question is too general for me to answer so my answer is a very general one as well.

[20Mil]

THE only good thing about the economy right now is .. theres only one bubble . thats precious mettals ..i see a burst of that bubble coming .. its just my opinion .

Actually there are quite a few good things about our economy right now but I'm not going to go through them one by one.

Many people who are in love with Gold / Silver forget that all of the excess liquidity can and will be pulled back in by the FED sometime down the road. Most of the monetary policy impact is already behind us. See, each of the Fed's new programs has been increasingly less effective in helping the real economy. Sooner or later the market will clear itself. And when it does the Fed will quickly take back all those excess reserves, which means U.S. dollar supply will fall. Therefore, fewer dollars will be out there as demand grows with recovery.

Here is proof: QE3 or "QE Infinity" was announced on September 13, 2012. Look at the reaction of Gold on that day... Gold closed at about $1,732 and rose up to $1,795 throughout the next few weeks and peaked on October 4, 2012. Since then we have seen further declines... LOL The market prices in everything in advance therefore the price of gold right now has already priced in everything that the FED has done. What happens once Mr. Market gets even the slightest hint that interest rates will rise in the US? Simple, gold prices will fall further...

Also, we are now witnessing the collapse of the Bond Bubble right in front of our eyes and this should also raise another red flag for the Gold bugs. Once interest rates rise (as they will have to regardless of what the FED wants) then more money will flock to the US Dollar seeking the higher yield.

Higher Value USD = Lower Value Gold

Thanks C.H.! You're right, price can't seem to break through 1790...

I don't think Gold will form new highs for a LOOOONNGGGG time if ever. I mean look at Gold and Silver, it is being promoted all over the main stream media as a good investment, this should raise another red flag for people looking to buy precious metals. The FED can take back as much excess liquidity in the blink of an eye at any time they see fit.

You trading Futures? Or do you have a broker outside the US that you trade spot price? Well done on your trade.

Edited February 15, 2013 by 20Mil

[dontlop]

it seems 18k scrap gold price is 1250 dollars per tryo ounce ..

in iraq its showing 224,000 dinars per troy ounce of gold .. hopfully this link works .. http://kirkuknow.com/english/index.php/2012/01/7160/ <<< thats only 200 something an ounce

Edited February 15, 2013 by dontlop

[20Mil]

it seems 18k scrap gold price is 1250 dollars per tryo ounce ..

in iraq its showing 224,000 dinars per troy ounce of gold .. hopfully this link works .. http://kirkuknow.com/english/index.php/2012/01/7160/ <<< thats only 200 something an ounce

Not really sure about that link / company you mentioned but $1,250 for one troy ounce of 18k scrap gold is pretty generous.

24k is basically 100% pure gold therefore 18k is 75% gold.

Today's Spot Gold: $1,634 multiplied by .75 (75% gold / 18k) is $1,225

[20Mil]

Not Convinced...?

Gold's nice 10-year rally has taken place within a clean rising channel, with line (2) being lower support.

It only broke below line (2) one time for a few months and that was during the 2008 financial crisis. I shared this chart with Premium & Sector Sentiment Extreme members last week, reflecting that Gold & Silver could see a new round of selling on breaks of key support lines at (1).

Gold came under selling pressure and declined over 10% in a few months when this support line gave way back in 2008. Long Gold owners need to be aware the same thing could happen again on a break of support at (1) above.

10-Year Channel

[Butifldrm]

THE only good thing about the economy right now is .. theres only one bubble . thats precious mettals ..i see a burst of that bubble coming .. its just my opinion .

The only true value of money is Gold or precious medals, or a currency backed by them. Since the birth of Christ this has been so. All Fiat currency systems since the beginning of recorded history have had an average of 35 years till collapse. I wish you would watch this video, it changed my life and my investment strategy and I believe anyone who owns gold should not sell until one ounce of gold equals the dow . When I was a child, my parents could walk into a bank and buy a silver dollar with a one dollar federal reserve note. Now you have to walk into a bank or you probably can not walk into a bank and even buy a silver dollar for less than 30 Federal Reserve notes. I know you think the metal market is a bubble. yet, I'm telling you people in the 80's who held Gold and sold it wished they still held it. So, in that, I do say this market is being manipulated as is all markets to keep the fiat currency system alive. When the free market reigns you the potential to gain. WAtch this video:

http://goldsilver.com/video/debt-collapse-20-000-gold-mike-maloney/

[20Mil]

The only true value of money is Gold or precious medals, or a currency backed by them. Since the birth of Christ this has been so. All Fiat currency systems since the beginning of recorded history have had an average of 35 years till collapse. I wish you would watch this video, it changed my life and my investment strategy and I believe anyone who owns gold should not sell until one ounce of gold equals the dow . When I was a child, my parents could walk into a bank and buy a silver dollar with a one dollar federal reserve note. Now you have to walk into a bank or you probably can not walk into a bank and even buy a silver dollar for less than 30 Federal Reserve notes. I know you think the metal market is a bubble. yet, I'm telling you people in the 80's who held Gold and sold it wished they still held it. So, in that, I do say this market is being manipulated as is all markets to keep the fiat currency system alive. When the free market reigns you the potential to gain. WAtch this video:

http://goldsilver.com/video/debt-collapse-20-000-gold-mike-maloney/

So we buy gold/silver and hold it until we die? When do you cash it in and let your money work for you? I don't see the value in holding gold if your money isn't working for you...

Could you please explain this buy and hold strategy in detail?

People need to buy things on a daily basis. Do we hold all of our paper assets in Gold and then pay the 1%-2% exchange fee anytime we wish to buy something that requires USD? Or do we walk into stores with our gold coins and try to barter with them...?

I agree that a small portion of a person's overall cash holdings should be held in gold, but no more than 5% -10% at the very most! What are you going to do with it? It ONLY tracks inflation, it does not pay a premium over it... However, if you don't have income producing investments that generate cash flow then Gold is pointless...

[dontlop]

The only true value of money is Gold or precious medals, or a currency backed by them. Since the birth of Christ this has been so. All Fiat currency systems since the beginning of recorded history have had an average of 35 years till collapse. I wish you would watch this video, it changed my life and my investment strategy and I believe anyone who owns gold should not sell until one ounce of gold equals the dow . When I was a child, my parents could walk into a bank and buy a silver dollar with a one dollar federal reserve note. Now you have to walk into a bank or you probably can not walk into a bank and even buy a silver dollar for less than 30 Federal Reserve notes. I know you think the metal market is a bubble. yet, I'm telling you people in the 80's who held Gold and sold it wished they still held it. So, in that, I do say this market is being manipulated as is all markets to keep the fiat currency system alive. When the free market reigns you the potential to gain. WAtch this video:

http://goldsilver.com/video/debt-collapse-20-000-gold-mike-maloney/

i know where your coming form but they are never going back to a gold standard . ever again . you can believe that if you choose .. but there not going to sit on a commodity ,locking it up sao they can have a money system .. its usless sitting in a vault and they know it ... the fiat monetary system will always be our money system .. why not back it up with bicycles .. just lock up a billion bicycles and use those to back up currency ..there is no need to lock something up .. so we can trade things using coupons . the world will end up with a single currency eventually and thats the way its going to be .. ive been informed that curency that wins out will in fact be the dollar ... its just a digital system used to keep track of goods and services .. like i say ,, have at it if you like . i see a bubble . nothing that just sits there has any value .. gold has a value in electronics .. its also used for jewlery ,, some people love to drape themselves in gold .. some like to drape themselves in tattoos .. i dont drape .but we all have cell phones and computers .and everyone in the future will use electronics . so who ever has the gold in the end is the one who can make these electronics ,,all metals have value . all comoditys have value .. ive heard they were talking about making property a comodity to back up currency .. but theres no reason to back it up with one currency, eventually their wont be any phisical currency it will be digits .. they will in the future expierence digital resets of our finance systems if necessary and those will effect every digit equally .. those digits wil be infinate .no limitations on creation of wealth .. you dont have to get some of someone elses wealth in order to have weath of your own .. you can simply create your own wealth out of nothing but an idea

[20Mil]

The only true value of money is Gold or precious medals, or a currency backed by them. Since the birth of Christ this has been so. All Fiat currency systems since the beginning of recorded history have had an average of 35 years till collapse. I wish you would watch this video, it changed my life and my investment strategy and I believe anyone who owns gold should not sell until one ounce of gold equals the dow . When I was a child, my parents could walk into a bank and buy a silver dollar with a one dollar federal reserve note. Now you have to walk into a bank or you probably can not walk into a bank and even buy a silver dollar for less than 30 Federal Reserve notes. I know you think the metal market is a bubble. yet, I'm telling you people in the 80's who held Gold and sold it wished they still held it. So, in that, I do say this market is being manipulated as is all markets to keep the fiat currency system alive. When the free market reigns you the potential to gain. WAtch this video:

http://goldsilver.com/video/debt-collapse-20-000-gold-mike-maloney/

I bet the people who invested in stocks rather than Gold are actually better off now then they would be if they had bought gold.

Food for thought: Gold began trading truly freely in 1973, after post-Bretton Woods controls were removed. Since then, gold’s returned a cumulative 983% (annualized 6.8%), while global stocks returned 2,229% (9.1% annualized) and US stocks 3,552% (10.5% annualized).* Gold’s 2009 run was much hyped in the media, but even then it lagged stocks, returning 24.8% versus 30.0% for the year.

Besides lost opportunity costs, what’s even more dangerous for investors? Gold historically has been a short-term timing game. Much of gold’s long-term gains have come from very short boom periods. Since 1973, there have only been six major gold booms, each lasting from 4 to 22 months—or just 15% of the total time. Meaning gold’s done less than stellar the other 85% of the time.

In reality, gold is prone to short-term volatility just like stocks and boasts miserable returns over the long term—practically flat over the last 30 years.

Cumulative & Annualized Returns since 1973:

Gold - Cumulative 983% (annualized 6.8%)

US Stocks - Cumulative 3,552% (10.5% annualized).

Globalized Stocks - Cumulative 2,229% (9.1% annualized)

Numbers don't lie...

[dontlop]

people who invested in cows did better .. cows multiply ..

[sandyf]

Gold has now broken the $1645 level! , Next area of interest is $1625. If that level breaks then $1589 is in the cards. Next is $1647 and then below that is my mid-term target of $1526.

What if $1,526 is broken and confirmed? Well then watch out below as Gold will fall into the abyss heading lower down to $1,310 or so but that is pure speculation at this point.

I expect $1,625 to hold and possibly provide a bounce up to test the ascending TL again after which a further decline to $1589 and then eventually $1525 in the coming months.

Gold Chart - Areas of support

Gold Chart (2)

Spoken like a true westerner. To the Asians, gold is king, something that the west find difficult to understand. As it becomes cheaper they will start to buy more and the price will rise. They will stop buying and in due course it will fall again, and the cycle continues. Along the way, speculators will lose their shirts and the Asians will gleam in the sunlight.

[20Mil]

Spoken like a true westerner. To the Asians, gold is king, something that the west find difficult to understand. As it becomes cheaper they will start to buy more and the price will rise. They will stop buying and in due course it will fall again, and the cycle continues. Along the way, speculators will lose their shirts and the Asians will gleam in the sunlight.

You Asians can "shine" all you want but it doesn't change the fact that Gold is still a commodity and is NOT a currency or in this case the Best Investment one can choose to park their money with.

i didn't say that Gold doesn't look pretty around your neck... Look at the title of the topic, it is a technical analysis of Gold at it's current level.

So just curious Sandy, what is your point? I'm a little confused... :blink:/>/> Is it that Asians look good wearing Gold around their neck?

Edited February 15, 2013 by 20Mil

[sandyf]

You Asians can "shine" all you want but it doesn't change the fact that Gold is still a commodity and is NOT a currency or in this case the Best Investment one can choose to park their money with.

i didn't say that Gold doesn't look pretty around your neck... Look at the title of the topic, it is a technical analysis of Gold at it's current level.

So just curious Sandy, what is your point? I'm a little confused... :blink:/>/>/> Is it that Asians look good wearing Gold around their neck?

Not a question of looking good, more of symbolic respect. I have lost track of the number of weddings I have been to here in Thailand, but each one never fails to amaze me at the amount of gold walking about. Weddings here are no mean affair, even small ones would be in excess of 300 guests. One I went in a school playground was in the order of 1500, and I live in the sticks. My wife did not have any gold when we got married so she had to borrow it, would have been inappropriate for the bride to be shown up by the guests.

It is all a question of perception,gold may fluctuate, but as long as a large percentage of the world population is Asian or the like it will never come about - " Gold will fall into the abyss"

[20Mil]

Not a question of looking good, more of symbolic respect. I have lost track of the number of weddings I have been to here in Thailand, but each one never fails to amaze me at the amount of gold walking about. Weddings here are no mean affair, even small ones would be in excess of 300 guests. One I went in a school playground was in the order of 1500, and I live in the sticks. My wife did not have any gold when we got married so she had to borrow it, would have been inappropriate for the bride to be shown up by the guests.

It is all a question of perception,gold may fluctuate, but as long as a large percentage of the world population is Asian or the like it will never come about - " Gold will fall into the abyss"

Here is where your thinking is flawed. It has been said that as much as 99x as much “paper” or digital gold is bought on commodities exchanges such as COMEX, as there is traded in actual delivery of physical gold. Physical Gold does not dictate the actual value of Gold. The world's Central Banks, large banks, major financial institutions, and Futures traders determine the actual price of gold everyday. NOT the bullion buyers out in Thailand, or India, or even here in the USA.

According to the World Gold Council, in 2011 the volume of paper gold that traded equaled 10x the amount of physical gold that has been mined in history!

When the IMF announced a sale of 191.3 tonnes of their gold reserves, though it caused an immediate sharp knee-jerk reaction in gold futures markets, will have a negligible effect on the long-term price of gold. Price of Gold is dictated through leverage, not through the acquisition of physical gold. Until the world's financial system does not exist that is how things will work. If the global financial system crashes then Gold will be the last thing on anybody's mind...

[20Mil]

Gold has now broken the $1645 level! , Next area of interest is $1625. If that level breaks then $1589 is in the cards. Next is $1647 and then below that is my mid-term target of $1526.

What if $1,526 is broken and confirmed? Well then watch out below as Gold will fall into the abyss heading lower down to $1,310 or so but that is pure speculation at this point.

I expect $1,625 to hold and possibly provide a bounce up to test the ascending TL again after which a further decline to $1589 and then eventually $1525 in the coming months.

Gold Chart - Areas of support

Gold Chart (2)

Second level of interest just hit! $1,625. Let's see if price can break this support, if so, $1,589 could be in the cards next week...

Gold - $1,625 (2-15-13)

Edited February 15, 2013 by 20Mil

[sandyf]

Here is where your thinking is flawed. It has been said that as much as 99x as much “paper” or digital gold is bought on commodities exchanges such as COMEX, as there is traded in actual delivery of physical gold. Physical Gold does not dictate the actual value of Gold. The world's Central Banks, large banks, major financial institutions, and Futures traders determine the actual price of gold everyday. NOT the bullion buyers out in Thailand, or India, or even here in the USA.

According to the World Gold Council, in 2011 the volume of paper gold that traded equaled 10x the amount of physical gold that has been mined in history!

When the IMF announced a sale of 191.3 tonnes of their gold reserves, though it caused an immediate sharp knee-jerk reaction in gold futures markets, will have a negligible effect on the long-term price of gold. Price of Gold is dictated through leverage, not through the acquisition of physical gold. Until the world's financial system does not exist that is how things will work. If the global financial system crashes then Gold will be the last thing on anybody's mind...

You have obviously misinterpreted what I said. I don't think anything. I live among people who see gold as next best thing to Buddha and you are quite entitled to you views.

As I said before, just like a westerner, no disrespect, I come from that side of the globe.

[fib1618]

THE only good thing about the economy right now is .. theres only one bubble . thats precious mettals ..i see a burst of that bubble coming .. its just my opinion .

I'll post a chart of the real bubble later. I'm stepping out for the day.

Edited February 15, 2013 by fib1618

[20Mil]

Wow! Look at gold drop...

Classic USD Rally right now...

[20Mil]

Second level of interest just hit! $1,625. Let's see if price can break this support, if so, $1,589 could be in the cards next week...

Gold - $1,625 (2-15-13)

Looks like we might see $1,589 before US market closes today at the rate Gold is dropping!

Edited February 15, 2013 by 20Mil