Saturday, January 11, 2014

My Gold Analysis comment January 11, 2014






Index rebalancing may be accounting for some of the upward pressure on Gold at this time. 

 The GSCI Index and UBS Commodity Index are resetting asset weightings and funds which follow these indices therefore have to rebalance as well.


Some people regard this as causing Gold to test 1,250.00 in the coming week.


The weak jobs data has given some impetus to Gold, there are a few more reports such as personal consumption expenses and the CPI, which if soft, will work to support Gold in a move higher.


The fear of rising interest rates has contributed to the decline in Gold, one mitigating factor may be the health of US Equity markets and the future policies of the Federal Reserve regarding the 'taper'.

We certainly can not be sure that Gold has bottomed, many experts see a price of $1,100.00 before trending much higher.

Update, January 26, 2016;

Here is a chart from today showing that Gold is just starting to move off the bottom, lower still than when this post was originally written.

How many times did the bulls promise that price would rapidly rise to the heights before it finally moved, two years later?

Image XAUUSD chart dated January 27, 2016



      





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