Gold rally over on december 19 2011
7:07 PM
Unknown
Gold rally over on december 19 2011
mines,gold,silver,oil,gazz,coal,prices,market,asia,europa,america,africa
What's happening with gold? Is it resting before its next big climb or ready to slide downhill?
Analysts' commentaries abound, with some analysts openly attacking each other at a personal level as the yellow metal goes nowhere.
While investors are usually sanguine about most asset classes, gold usually brings out passions from both those who believe in gold and those who detest the asset class.
Noted gold bug Dennis Gartman said last week he had sold his gold positions just as the market was cooling down in July. Market pays attention to Gartman as he has been in the commodity business since 1974 and correctly called the commodity slump in 2008.
"Since the early autumn here in the Northern Hemisphere gold has failed to make a new high," Gartman said in his subscription-only newsletter. "Each high has been progressively lower than the previous high, and now we've confirmation that the new interim low is lower than the previous low. We have the beginnings of a real bear market, and the death of a bull."
After crossing $1,900 in September, gold prices have tottered and fallen just as analysts were expecting it to cross the magical $2,000 an ounce mark.
Frantic central bank buying and negative global economic sentiment has also not ignited price upwards.
"One of the oldest rules of trading is simply this: a market that cannot or does not respond to bullish news is a bearish market not a bullish one," said Gartman.
While gold is down 16% from its September high, it is up 12% in the year, although remarkably lower than 29% returns it delivered in 2009.
Other gold analysts, especially those with significant long positions, have railed at the analyst for ditching the yellow metal.
Peter Grandich, another seasoned investor, went as far as to challenge Gartman and a few other analysts to million-dollar bets on gold: the bet being that gold will hit $2,000 before it returns to $1,000.
"In almost three decades in and around Wall Street, I've never seen such widespread distaste and outright hatred of an investment that for almost a decade has greatly outperformed just about every other investment vehicle: gold," said Garndich in his investment newsletter.
"I will discuss why I believe this is the case in a moment, but I want to first respond to what I can only describe as one of the "Three Stooges of Gold Forecasting's" latest forecasts that has once again caused near hysteria among gold players and the media that follows it.
"Dennis Gartman, a true master of self-promotion but who's actual track record (if anyone in the media actually delved into it I believe they would see for themselves) better suits him for the lead role in "The Boy Who Cried Wolf," has once again grabbed headlines with yet another the-gold-bull-market-is-over assertion."......READ MORE
Posted in 
Subscribe to:
Post Comments (Atom)
1 Response to "Gold rally over on december 19 2011"
Today’s trends for commodity
GOLD (5 FEB.) TREND: CONSOLIDATE
RES 1: 28750
RES 2: 29000
SUPP 1: 28000
SUPP 2: 27700
STRATEGY: SELL ON HIGH
best intraday tips provider
Post a Comment