Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is Gold Price on the Verge of a Breakout?

Commodities / Gold and Silver 2015 Nov 24, 2015 - 04:11 PM GMT

By: Sol_Palha

Commodities Hasten slowly and ye shall soon arrive. - Milarepa

In August, we came out and openly stated in an article titled the Gold bull is dead that it was not the time to buy Gold. At that time, many analysts were calling for a bottom and much higher prices.  We stated that there was a high probability that Gold would move lower before bottoming out. Fast forward and that outlook has come to pass.

So let’s see what picture fundamentals paint.


Demand for Gold is soaring according to the World Gold council’s latest report.

The latest report shows that overall worldwide demand for Gold soared by a whopping 33%.

Americans are jumping into the foray also; U.S retail demand for Gold soared to 32.7 metric Tons, 200% more than the same period last year.

The report also states that Gold demand in China Surged to by 70% to 52 metric tons. 

Europeans also appear to be loading up on Gold.  Demand increased by 35% to 61 metric tons.

So what gives; why are gold prices not soaring.

Based on fundamentals, the dollar should have crashed long ago, as the U.S. Fed has created more money in the last ten years than it has created in the last 100.  Fundamentals would have had you jumping into energy and oil stocks just when they tanked. Up unit the very moment oil crashed, all the experts were screaming about a shortage of oil and surging demand in Asia. Overall demand in Asia continues to rise, but the same individuals are now signing a different song. Instead of less oil, they are now singing the oversupply song; oh how fast they jump ship. 

The following charts illustrate that Gold demand is increasing, so what gives?



The chart from the world Gold Council clearly indicates that demand for this precious metal is rising.   

Central bankers are busy loading up on the metal. The main buyers are Russia and China.  Perhaps they are privy to information that the general public is not? Whatever, the reason, central bankers appear to be aggressively stocking up on Gold.   

India has joined the bandwagon; Indians are buying a lot of Gold again.

Why or why when all the fundamentals look Good, does Gold continue to drop like a rock.


Fundamentals do not drive the market; they just provide you with a picture to somewhat justify your biased views. What drives the market is emotions, and some technical indicators have the ability to pick up on these emotional changes.  Crowd psychology is probably one of the best and least utilized tools when it comes to spotting topping and bottoming action. We are not talking about the timing the exact top or the exact bottom. This endeavor is best left to fools who have nothing better else to do with their precious time.   Right now a lot of people are embracing Gold, but the crowd is still silent.  When the crowd joins the pack, then the situation will move from quiet to explosive.

The technical picture is indicating that a real bottom could be close at hand.   In August, in article titled “The Gold bull is dead”,  we stated the following:  

From the Technical analysis perspective, gold has one more leg down, but the last leg might or might not be too steep.   Every bull market undergoes a back-breaking correction, and Gold is no exception.

What’s next?

So far most of this has come to pass. Our trend indicator is not bullish yet, so until it turns bullish, Gold will not mount a significant rally.  However, if you loved Gold at 1800, you should be simply nuts that it's trading at $1100. The Gold camp is in disarray and despair is beginning to set in; this is the ideal time for a bottom to take hold. When Gold topped back in 2011, the Gold camp was jubilant and could only envision higher prices.  Gold is not the on the verge of a breakout yet, but it could be on the verge of putting in a bottom, and that would be a move in the right direction.  To indicate that a bottom is in place, Gold cannot close below 1050 on a weekly basis; failure to hold above this level should lead to a test of the 1000 ranges, with a possible overshoot to $950. 

A good idea plus capable men cannot fail; it is better than money in the bank. John Berry

by Sol Palha

www.tacticalinvestor.com

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of the market. He and his partners are on the web at www.tacticalinvestor.com.

© 2015 Copyright Sol Palha- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in