EurAnalysis

Long @ 48

Thank you JD, I am trying to apply your theory on Gold. I want to give a full one year and a small Account to Pyramid concept.

Yep! Bang on PT !

Reuters is targeting 1000 at the end of 2013
I have been waiting for this move since mid Nov 12...My first target reached 1350 ... Second target 1285
ADD: In coming months if US data comes in green Gold will fall and could reach close to that target...Secondly Cyprus looking to off load 10 tons and that could lead other CB's to follow..

Forbes is reporting John Paulson and David Einhorn have losses totalling more than $US600 million in gold’s collapse since Friday.

ouch

Cool brother I think you will do well for a couple of reasons.

Gold like food is the ultimate asset. It will never go off the board to 0 like Nortel and many others. Even after 5000 years.

Also look at who is buying its the big boys while hedges and Elmer Fudd retail sells at a loss.

The only way out of the CDS derivatives mess is gold revaluation. QE is just a side show. You heard it here first.

Also gold is on sale now and we all like a sale.

Pipnography for Pip Pervs



http://www.forexfactory.com/attachme...1&d=1366073459

Hi Harpe, how are you? Congrats on the targets met

OMG ..thats serious money.

Gold crash heralds return of King Dollar

By : David Llewellyn-Smith, Editor MacroBusiness

Analysis

* Panic selling: gold rout gathers steam

* High-cost gold producers fell the pinch

The gold crash has really got going now and brings to mind an old truth in commodity investing: that prices ride the escalator up but catch the lift down.
Here is the crash on the one-year chart:



Some are claiming that this is now a once in a 2 million year 'Golden Swan' event which is just a bit rich. Nonetheless, it is dramatic.
But what's it saying? To understand we need know what makes gold go up in the first place. There are various marginal reasons - sovereign instability, inflation, jewellery demand - but one towers above all else, the value and stability of the dominant reserve currency, the US dollar.

Here's the money chart:



You will note that despite a neat inverse relationship, gold has no one-to-one relationship with the dollar. That is, gold went up much more than the dollar went down. I argue that is because gold's real relationship is not to the dollar's value itself but the degree of stability or otherwise in the policies that determine that value.

That is, a high degree of instability in US monetary and fiscal policy, especially of the expansionary type, will lead to gold appreciation. It has a one-to-one relationship with chaos in value determining settings not real value itself.

So, the direct conclusion to draw is that gold is falling because the chaos that marked US fiscal and monetary policy since the GFC is ebbing. And that is the case with the US budget coming slowly under control and, in a world of mad central bankers, monetary policy suddenly seeming much less radical than it did.

Don't get me wrong, I'm not pretending to have all of the answers here. Gold defies such an approach. Ironically for the true believers in gold's intrinsic value, it is the ultimate social artifact, more reliant than any fiat currency for its value on the degree of faith or skepticism in policy settings.
Thus for me, the three key events that have caused gold to correct are those that have shifted the perceptions of US monetary policy stability:

Mario Draghi joining the money printers stabilisation in the US housing market and its gas boom Japan's mad and bad QE.

All of these have prevented the $US falling any further for now and into the immediate future.

The gold correction is thus good news and bad. It heralds the return of King Dollar and is good for global inflation as all commodities deflate relative to this benchmark. But it also means the US is once again saddled with its exorbitant privilege and that that will slow its recovery.

For Australia, gold's tumble means several things. The good news is that the relative stabilisation in US policy means that the Australian dollar will struggle to rise from here. The bad news is that gold is our third biggest export, bigger even than thermal coal, so the terms of trade is taking another hit largish hit:




Both undermine the Australian dollar and let's hope it falls soon because gold is signalling that the dream is over for commodities.

Thanks rekon for the article...great reading. I've a lot of friends who at $30.00 were screaming "Buy Silver!! The sky is the limit!!" .... No, I did not heed. The AUD has been bumping up against this resistance for a long time, and it is interesting to watch this fall in gold. I have to assume it will affect the great OZ. I guess twt.

Going to bed so I am setting a 10 pip TS what I get I get. already up +20 on Long @ 48

May short on ZEW

Also set a LO to Short @1.3099 Lets test my theory that hard stops get hit.

Set 10 pip TS on Long @ 48 already +32 its free money so I can sleep well

Yep, you did the right thing by not hearing the crowd, I am thinking of semi long term and seems if I wait for few weeks I might get a good deal on commodities, let the dust settled.

Thanks bro ...I am good how are you..?

TS hit on Long @ 48 for +22

Long @50

Out of long @ 50 for +55

Short @ 1.3099 when LO was hit

Existing long @ 1.3131

Great job ET. You're really knocking them off one by one

Thanks PT. Just dancing with Ms Market one good trade at a time.