XAU/USD & XAG/USD - Gold & Silver Traders Thread

gold has fairly tanked over the past hour or so, I have moved my stop to below 1345, to lock in some pips, it look pretty bearish to me at this point...

It looks like the protestors are not going away. I watched last week as the pro-Mubarak protestors gained ground and as the violence increased, the price of gold actually declined. This gave me the distinct impression that gold is set to fall as soon as the regular order is restored - and THAT is the general feeling throughout the markets - that the protest will come to an end soon and the status quo will be sustained. HOWEVER, I am taking a contrarian view and expect that they will not be sent home. I think the market is understimating their staying power. These young, hungry, desperate men have nothing to lose - and each day, their bond grows stronger and with each martyr they become more determined and angered. It won't end well... Mubarak will be forced out within two weeks is my guess and that will realy throw things into chaos. Oil and Gold should do very well under those circumstances.

The buyers react to the support 1327.
However, the reaction takes place with little firmness.
Pay attention to the bull-trap.
Chart daily.

4hr chart is showing rejection of higher prices with a bearish hammer. if we break fridays low i will probably just get out, and look for another trade. for me this was counter trend to go long, so i usually protect my capital more agressively than if i was trading with the trend.

http://www.24hgold.com/english/news-...=Jim+Willie+CB

this is the part of the article that explain whyb gold price drop last weeks...

"...Something unique and unusual has happened in the last three weeks. The Euro currency has risen noticeably from 129 to 137, but the Gold price has fallen from $1385 to $1335 per ounce. For almost a full decade, the correlation between the US$ DX index and the Gold price has been in the minus 70% neighborhood. What has happened in the last month has been a gigantic outlier. It is not just significant with umpteen standard deviations above the norm. It is in the wrong direction. My best guess is that the Chinese have temporarily halted their usage of the COMEX avenue for gold acquisition. They have permitted the corrupted COMEX to push down the gold price, using its fraudulent paper mechanisms. They have given free rein for the Wall Street maestros to lower the gold price for any IMF deal to secure European gold bullion in exchange for EuroBonds. Most gold & silver contracts are settled in cash anyway these days, since the COMEX does not have much precious metal in its possession. Imagine the day coming before too many months when gold & silver can be traded in contracts at the COMEX with no gold or silver metal exchanging hands. That day is coming, along with ruin of the GLD and SLV defaults, ruin, deep discounts in share price versus the metal price, and investor lawsuits. As for the Gold & Silver price, they will rise when the Chinese decide to resume buying. Right now, their attention is diverted to EU gold bought at deep discount, and in volume. As usual, they are thinking at least 20 years ahead. The Gold & Silver price will rise soon enough for the patient minded. The physical market wrests control always, as the mid-term forces take over......"

BOOM

still long here, decided to hold my ground, glad i did now.

feb monthly
1418
1357
1296
bias is down from 1357

weekly
1380
1345
1310
bias is up from 1344-45 otherwise turning and heading south.

tue.day
1360
1344
1328

1357-58 area noted.

and of coarse dont forget my favorite, go silver.
keep buying that physical.
http://meltdown2011.com/2009/06/13/t...lver-shortage/
http://kingworldnews.com/kingworldne...Using_GLD.html

Hopefully this BREAKS UP NORTH.

With the "somewhat" positive NFP gold may suffer a slump in demand or as some that buy physical metal wait for and call a buying opportunity.

As a trader I want higher Gold b/c I am long.

As an investor I want a better price to buy at. Yet I still want a higher price so I can sell at profit....

Can't have em' both. So best is a bit of both.

Actually, being able to speculate gold via a forex broker is great for true to life hedging.

Say you buy, 5 ozs for 1350. so 1350 x 5 = 6750 USD
you want to get in and have the cash yet figure the price may fall after you buy. What to do?

Go to the market and short Gold in the desired amount you want to reduce of the 6750 risk. Being that if you are buying for the long term a large or even hedge would not necessarily make sense.

Yet even if you hedge half your risk, say 3000 usd, and the price drops $50 bucks, you can simply close the short and still have gained while holding a tangible asset.

boring chart below.

What is the target at the north???

well sideways to up is working so far. still holding longs.

For now I'll be happy to see the price stay above 1360 area. The current H1 bar seems to have pierced this resistance area.

More charts

My second purple dashed downward trend line is BROKEN.

A new trend may be emerging.
Here are the views.

Sometimes the naked chart is nice sometimes you miss things like this!!!

1500 - the last post has new charts

My targets noew 1375 Au & 30.65 Ag.

I have 4 open lots.

It really depends on how the price action builds and the news comes out in the next few months.

I learned buying and selling gold via physical metal the lowest term chart I would look at was the daily. Look at a 3 month and the yearly chart sometimes.

We are in one of those periods now where things are still uncertain, there could be more correction if tensions over global debt and finance ease.

However, there are still NO JOBS. In my fundamental view
jobs = money circulating = more people spending = > demand more need for supply = sales = profit = more money finally coming back to the need for more JOBS.

Technically this is looking good - H1 and daily are my base gold charts for trading. Never look at m5 or 15 unless I am scalping for 3 USD moves.

Second H1 Bar HAS FORMED ABOVE CHANNEL!! We may be out!

Thx Xtrade for your graphs.

Like you said there is no jobs and none are coming up in the US.
And after the end of QE2, QE3 will come...
Also, JP Morgan is now accepting gold as collateral for lending.

10 cents away from 30 bucks an ounce

Hi,

What we expect coming to end of Feb-2011, GOLD & SILVER, Bullior or Bearish?

Regards,
VBS2010