USD Gold below 1000 - what now?

[GarethJ]

Last week we discussed USD Gold moving below 1000 again, well we're there now. USD980 or USD995 were mentioned as support and we've touched USD995 today. Rand is weakening a little. US stocks cooling off and some positive economic indicators. So, do the Gold Bulls see this as the buy zone or are people waiting for further pullback now? I've dipped my toes into the GLD waters again around R74 - will top up on some further dips.

[bangbul]

Beware China is buying US Bonds, if they keep it up the $ might even get stronger.

[#3]

Jeez dude relax lol

[SimonPB]

China has been buying truck loads of gov bonds since forever ..

[#5]

watch gold closely should we break above 1010, we are off to a new high

[#6]

and she blasts off...up up and away....!!!!!

[kwagga]

This gold price is not much to get excited about. If the rand continue to strengthen then the advantage of a higher gold price is zero. Just watch the GLD action (or lack thereof in the last few months). It's enough to put anyone to sleep. It's trading in a range between R72 and R77 and stuck there. If you get all excited every time the gold price breaks $1000 then maybe you should consider yourself as a bit of a sentimental person. Even gold at $1200 would mean nothing if the dollar continues to weaken in the same manner it has been.

[#8]

You are saying the rand will strengthen to R6(US$1200)... R5 (US$1500)... R4 (US$ 1850) ...?? haha. I would like to see that happen.

[kwagga]

Well let's say the Gold price increase faster than the dollar decrease and in a year's time we're sitting on $1200, with a R6.50 to the dollar - that's only a 5% increase in the R value of an ounce of gold. R6.50 is not that farfetched either. I remember the $/R at $1/R3.80 and that was in the early to mid nineties.

[GarethJ]

This is really just a simple trading play - just the same as any other share on the JSE. At a fairly good entry (74 or less) there's as much chance that Gold and Rand will play nice together with a relatively large upside or they may play nasty with downside. From a pure TA perspective there's an indication that GLD is setting up for a potential upside break? If not, we'll sell on the stop loss. No-one can possibly hope to predict what is going to happen with this interplay in the next year!