Gold Poised for Worst Monthly Run in 11 Years on Europe

Gold Poised for Worst Monthly Run in 11 Years on Europe

From bloomberg.com

Gold is poised for the worst run of monthly losses in more than 11 years in New York as concern that Europe’s fiscal crisis is escalating drove investors to seek the dollar as a haven over the precious metal. Italy’s Prime Minister Mario Monti and Ignazio Visco, its central bank chief, pressed Germany to back more aggressive efforts to halt the escalating debt crisis, setting up a south- north showdown over how to stabilize the 17-nation euro economy. Bullion is 6.1 percent lower in May for its biggest drop this year as the dollar rallied 5.1 percent against a six-currency basket including the euro. “Though our ... (full story)

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May 31, 2012 9:48am

1682....it can be painful hold on brother..am also long..it will break 2000 soon..the games Bernanke is playing will end soon..QE is coming whether he likes it or not..US economy is contracting because of reduce global growth

fxsport

May 31, 2012 5:06pm

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Why do you people think that gold is going to increase in price? Gold is the 'haven' when inflattion is running rampant. Does anyone see inflation?

Gold is decreasing in price because countries are going to have to either:

1. Put up their gold reserves as collateral to get loans

2. Sell gold on the open markets in order to repay their loans.

Buying gold as an investment - not very smart, especially when you have to pay the holding costs, transport, etc.,

fxsport

May 31, 2012 5:09pm

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Quoting summerwine

Disliked

the real recession it's just start, buy gold and keep it open at least 1 year

Ignored

What real recession are you talking about? Where?

Things look pretty good in Germany, Denmark, China, Brazil, Russia and certain states in the US. Some people look at the glass as half empty but I see my glass as half full and as the EU continues to struggle my EUR/USD shorts are adding more pips to my glass!

ttolman

Jun 1, 2012 9:29am

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Quoting fxsport

Disliked

Why do you people think that gold is going to increase in price? Gold is the 'haven' when inflattion is running rampant. Does anyone see inflation?

Gold is decreasing in price because countries are going to have to either:

1. Put up their gold reserves as collateral to get loans

2. Sell gold on the open markets in order to repay their loans.

Buying gold as an investment - not very smart, especially when you have to pay the holding costs, transport, etc.,

Ignored

ooops.

ttolman

Jun 1, 2012 9:33am — Edited

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All countries "are" inflating. The modern term for inflation is Quantitative Easing (QE). So, "yes" monetary inflation is everywhere and that's why flight to gold and other real assets like food commodities, with real value, will continue to rise.

ttolman

Jun 1, 2012 2:23pm

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I wish (and hope) that students of economics understood the clear difference between "price" inflation and "monetary" inflation. It's NOT the same thing. Clearly monetary inflation drives price inflation...something that modern economics likes to side-step. The bottom line is simply this: assets with real value will "always" rise in the long term when the underlying fiat currency is inflated. It's common sense and obedient to natural law.

avibe

Jun 1, 2012 6:40am

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gold is about to crash 200 pips minimum

fxsport

May 31, 2012 5:01pm

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Quoting Dr.Zain

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i have long position @ 1682 and i am keeping this as long as my equity allows me?

Ignored

Thank you for being so honest. Like losing money do you?

Exodus

Jun 1, 2012 6:35am

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Quoting ttolman

Disliked

I'm thinking of pulling out all my teeth and replacing them with shinny, yellow gold pearls. Do you think anyone will notice?!

Ignored

I expect they will hear you...

Dr.Zain

May 31, 2012 9:27am

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i have long position @ 1682 and i am keeping this as long as my equity allows me?

Dr.Zain

May 31, 2012 9:29am

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if 4hr closed at 1522 there will be more sliding of Gold!

Jun 1, 2012 8:22am

POW!

May 31, 2012 9:59am

I'm waiting to see if it actually does turn around before buying..waiting for silver to break out of this wedge and continue down. Why long something that's trending down?

summerwine

May 31, 2012 11:41pm

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Quoting fxsport

Disliked

What real recession are you talking about? Where?

Things look pretty good in Germany, Denmark, China, Brazil, Russia and certain states in the US. Some people look at the glass as half empty but I see my glass as half full and as the EU continues to struggle my EUR/USD shorts are adding more pips to my glass!

Ignored

This is just the "quiet before the storm", problems in europe is far to be solve, in US the real inflation is much higher, China economic growth it's start decline,..., in short period of time investors will return to only real value.

summerwine

Jun 1, 2012 11:10am

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Quoting ttolman

Disliked

All countries "are" inflating. The modern term for inflation is Quantitative Easing (QA). So, "yes" monetary inflation is everywhere and that's why flight to gold and other real assets like food commodities, with real value, will continue to rise.

Ignored

Correct ttolman, I think gold has started climbing for long term as i said yesterday

SalmanDhedhi

May 31, 2012 9:22am

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buy gold for long and long

SalmanDhedhi

May 31, 2012 9:29am

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it wil and im waiting for that but i will buy more then i have now in my at 1500 and just i will wait fewz week and it will at 1700

joao.mbranco

May 31, 2012 10:05am

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for the time being, gold is overpriced. Specially XAUUSD, while europe crisis unfolds gold may still drop since USD will rise, but when (and if) deep crisis passes the Atlantic and spreads like a plague (or simply detonates and takes everyone and everything with it) then yes, gold might be a refuge, but in those circumstances watch out *where* you have your *gold* stashed... If the bank or broker implodes, so will your cash, no matter how well you planned (and executed) the trade...
If you really want to go long on gold for a *very* long time, buy physical, but then again, find a safe place to stash it...

ryknowtrade

Jun 1, 2012 2:38am

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So is Dennis Gartman long gold in gold terms here? And short it in pork bellies? That guy is a donkey (x100).

Own gold, own silver. Review history.

joao.mbranco

Jun 2, 2012 5:03am

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Quoting ttolman

Disliked

I'm thinking of pulling out all my teeth and replacing them with shinny, yellow gold pearls. Do you think anyone will notice?!

Ignored

Don't do that

Gold is only money, and money is only an illusion, your teeth, if you have good teeth, on the other hand, are irreplaceable. By the way, great day to make money on gold, yesterday, but I'm not replacing my teeth... ;-D

joao.mbranco

Jun 2, 2012 5:25am

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Quoting summerwine

Disliked

Correct ttolman, I think gold has started climbing for long term as i said yesterday

Ignored

It seems it happened earlier than I thought (lucky I jumped in, in time to get some

)... But still, it is too soon to tell, gold reached 1900 in the past and is now 300 below, only if things go really bad all around will it pass 2000 before the end of the year, as many people thought a couple of months before. The long term trendline was broken and the price has been moving sideways for a long time now, it will take quite a jump to get back to that trendline (yesterday's jump was a start but still much has to be seen yet) and even getting back to the trendline will not put it at $2000 by 31st Dec 2012. If it resumes the previous rate it will end 2012 at around 1760 and reach $2000 by October 2013.

ttolman

May 31, 2012 9:48am

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'...seeking dollars as a haven...?' What a joke.

ttolman

May 31, 2012 3:57pm

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I'm thinking of pulling out all my teeth and replacing them with shinny, yellow gold pearls. Do you think anyone will notice?!

ttolman

Jun 1, 2012 2:26pm

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Yep, silver and gold will be poised to replace fiat currency when the existing system collapses...my guess is that this will happen within the next ten years.