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cbwang888 (25.43)

Gold is down 4% now this is a great buying opportunity?



February 04, 2010 – Comments (7) | RELATED TICKERS: GDX , GLD , SLV


Since last week Gold bounced back from $1075 area, we had news like

Obama's 3.8T budget plan --> More T-bonds selling and Fed printing coming

Obama admin wants to double US export by 2015.  --> This spells USD depreciation

Obama wants to get tough with China on currency --> USD will lkiely be down against RMB


Today's job report triggerred broad market selling and it knock down gold by 4%, in addition to yesterday's reversal of gold action.

If gold can't close above $1075, what is the next support? $1040?

I can't resist and bought some 2010 Jun GDX $41 calls @ $4.

7 Comments – Post Your Own

#1) On February 04, 2010 at 12:07 PM, outoffocus (22.86) wrote:

I'm actually watching the dollar index more than gold. The price of the dollar is a better indicator of the overall direction of commodities (at this time) than gold. At this moment the dollar index is almost at 80, which is the highest its been in over 6 months. I dont think this means that the dollar is fundamentally stronger. I just think that investors are back to the foolish "rush to safety" practice they used last year.  I believe that once a viable alternative to treasuries comes along as the "safe haven" currency, the fundamentals of the dollar will take over and commodities will skyrocket.

As the dollar continues to reach for its former highs, I believe precious metals are a buy. Its a good possibility that gold may sink back into the 900s. Then I think gold will really be a buy. But I'm more focused on silver because I believe silver has higher appreciation potential.

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#2) On February 04, 2010 at 12:15 PM, cbwang888 (25.43) wrote:

We saw 2 days ago money flying out of T-bonds when Obama's budget plan revealed. Now money go right back to where it was days ago?

For the last few weeks, gold have been trading up oversea but down most of time during NY trading hours.  Let's see how long it will last ...

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#3) On February 04, 2010 at 1:07 PM, goldminingXpert (28.63) wrote:

$DXY printed 80 for the first time in a long while, the selling in gold will get worst unless the dollar turns. And the move the the dollar is actually pricing up strength. The Euro in particular is getting utterly decimated.

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#4) On February 04, 2010 at 1:23 PM, ralphmachio (< 20) wrote:

I'm not going to start to buy gold until 900, and even then I will be wary because of flight to US dollar because of other currencies collapsing. As much as it makes no sense, I think there's a possibility for huge dollar (relative) strength, especially to the Euro. Depending on how low the next leg down is, Gold could be crushed, but only right before it goes lunar. 

I'm not gong to sell, but add as it goes down. (to show how unsure I am)

If anyone sees a flaw in this thinking, I welcome criticism. 

It is the fluctuations that make the rich richer, and that's why I think it'll happen. 

Obama talks out of both sides of his arse.  I wouldn't trust him as far as I could throw the people who put him there.  

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#5) On February 04, 2010 at 1:34 PM, cbwang888 (25.43) wrote:


Some nations in Europe aren't doing well but you can also count how many states in US are in deep trouble?

I also think Gold correlate with AUD/USD and CAD/USD more than EUR/USD ...



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#6) On February 04, 2010 at 2:12 PM, cbwang888 (25.43) wrote:

The story of the day : global debt worries pushing investors out of risky assets

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#7) On February 04, 2010 at 2:17 PM, goldminingXpert (28.63) wrote:

AUD/USD is getting utterly decimated over the past two weeks... not raising interest rates was a killer punch oto the A$. USD/CAD is undervalued at the moment, I expect appreciation to 1.15 on USD/CAD shortly. Gold should be a decent buy around $900ish.

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