Gold Rush

Posted: January 31, 2014 in Uncategorized
Tags: ,

January….Gold has been one of the best asset….just when all Global Research Houses downgraded their forecast on Gold.

As usual it is the famous saying “do what Wall Street does, not what Wall Street says” – Specially when Goldman Sachs say something you should do the reverse….up to you guessing why.

Jokes apart – the rise of Gold is one of the various unintended consequences of the tapering. And we had just 2 tapering episodes. So if the FED keeps on tapering (as they will do)  and create shockwaves in the emerging market – emerging market will keep on increasing their flight to safety …US treasury bonds, USD and gold. Gold will be mostly physical…so there will be a delay in the price movement.

The big resistance for gold is USD 1270 , then USD1,340 and USD1,420. As usual it is a good hedge versus equity – and very dangerous play.

The double bottom plus bear trap at USD1,180 looks pretty solid – but Gold is pretty wild at the moment.

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