Gold Price Review

Reviews on spot gold prices, gold stocks & futures, related news and Technical analysis.

Location: Hong Kong

Friday, April 28, 2006

Gold makes $655, another 25 years record high

Dollar was very weak since yesterday Bernanke said interest rate will pause or stop very soon. Currency like GBP and EUR surge over 2% in two days.

Gold also rises during US morning session and rise from last close of $633 to $655 (+$19), making another record high since 1980. Weak dollar will continue, gold will get stronger and $700 is near !!

Go Go Gold !! Cheers~

Thursday, April 27, 2006

Gold fluctuates on mixed news

News is all about interest rates. China govt announced tonite that it will increase the leading rate of central bank from 5.58% to 5.85%, effective tomorrow, for the sake of slowing down the boom of credit and investment in the mainland. This affects the global market and gold drops by nearly $10 after the news to $630.

Whereas Bernanke reveals tonite "policy-makers could at some point pause in their 22-month credit-tightening campaign". It is a strong proof that the interest hike will top very soon, if not stop immediately. This brings good news to stock and commodity market. Gold bounce back and testing $640 again during US morning session.

Wednesday, April 26, 2006

Gold correction finished, ready to test new high again ?

Gold breaks the trading range of $620 - $635, now trading at $639. Is it ready to test another new high ? This year the highest price has been $642.

US dollar turns even weaker, EUR/USD has broken 1.24 and is trading at 1.2444. This helps Spot gold to push higher. The down trend of US dollar is just at the beginning. I strongly believe it will be weaker and weaker in the mid/long term. Giving the strong support of weak dollars, Gold at $640 is never at its highest position. Further highs coming.

On the other hand, be aware that when people are getting too optimistic towards Gold, it is very likely Gold has seen its top. Few people believe gold could reach $500 when the price was at $420. Few people believe gold could break $600 when Gold was trading at $530. Nowadays, people tend to believe gold will test $700 very soon. Some even thinks it could reach $1000. Is it indicating Gold is near its top ?

Monday, April 24, 2006

Gold trading range - $620 to $635

Gold price closed last Friday at $632. Today is the beginning of a new week and Gold is trading in a narrow $15 range between $620 - $635. The highest being $642 made last week.

Gold has been rising too quick since it has broken $600. This was caused by the buy back force of investors who has sold Gold futures below $600. The bull guys push it up further and force the bears to cut loss. After that spot gold fell down when the force was gone. It was expected gold will stay in current range for some time to digest. The uptrend is never changed.

Bill Murphy, committee of Gold Anti-Trust Action, predicts gold price will reach $1000 by the end of 2006. If you believe in him, there are still 60% increase to go !!

I'm not that optimistic as Bill, but I believe $850 is reachable.

Friday, April 21, 2006

Rollercoaster continues - Gold climbing up the mountain again

After the big sell-off of commodity gold last nite, gold has found a support at $610 and started to recover some of its loss today during the US market session.

Last nite Gold drop from record high $641 to $608. As of today spot gold determined a gain of $23 from its lowest, now trading at $631.

When investors has finished a short term profit taking, gold is expected to pick up the rising trend again. The major supporting factors for high gold price has never changed:
- afraid of war
- high demand
- weak US dollars
All factors still exist and help gold price being unstoppable.

Thursday, April 20, 2006

Rollercoaster starts... Gold falling from $640 to $608

Recently Gold continued to test new high after breaking the $600 barrier. It has reached its recent high of about $642, finally retreated today.

The drop was like free fall, in 2 hours time, CMX gold falls without support to $608.

An initial support was found on $610, and quickly rebound to $620, and struggling around this level during US morning session.

The sell-off is broad based. No major cause is found but only due to a heavy profit taking. Besides Gold, most of the commodity futures drop, with silver lossing 13% in a single day. The accumulated gain has been huge and the sell-off is always fast and severe.

Wednesday, April 19, 2006

Gold surges on weak US dollar

DOW rises by more than 190 points yesterday, and most of the commodity futures made its new high too.

Gold price is unstoppable, yesterday spot gold is just $618, today it adds another $9 to $627, continue to break the 25 years record high.

US govt has 8450B of debt in 1980, where Gold made its record high $850. Now in 2006, US govt has 84000B of debt, plus the demand of Gold keep increasing from China and India, the rise of Gold is potentially far beyond that value.

Gold keep rising neglect the servere overbought in TA. The problem is when everyone lost confidence in US dollar, they will turn to sell dollars and buy gold, which then helps supporting its high price.

Monday, April 17, 2006

Easter resurrection - Spot Gold continues to break 25 years record high

Gold enjoyed a good easter with wake up with a US$15 increase in a single day. Now $615. Thanks to Jesus =P

Gold closed at around $599 last Friday, and this Monday it started clear above $600 and keep climbing up. US Dollar turns weak significantly today, supporting GBP, EUR to rise more than 1%. Gold is even stronger and has raised more than 2%.

US Bond is still topped above 5%, but it has been revealed that interest hike is very likely to end in a short while. Along with the commodity uptrend in recent years including sugar, platinum, bronze and gold, it is a safe bet to conclude that Gold price will keep on rising in the coming future.

Someone said a bubble in commodity futures has formed, I tend to agree, as the level of rise has outreached the supporting factors(strong demand, war crisis). But when will it burst ? No one knows.

Tuesday, April 11, 2006

Gold breaking USD $600 and retreat

This morning in Asian time it has been an exciting time seeing Spot Gold breaking USD $600 and making a 25 years record high $603.

Unfortunately, it fails to keep the momentum and falls back following the drop of US market. Now the price goes back $596.

During the time 2005-2006 March, the top 5 commodity increase has been:
1) Sugar (110%)
2) Bronze (75%)
3) Platinum (70%)
4) Orange juice (55%)
5) Gold (40%)

Rise of Gold is not huge this recent year. The king is sugar, as it is the raw material for making oil supplement. As oil price rises to near $70 again, people tends to find cheaper alternatives to replace oil. The uptrend of sugar is expected to continue and the rise will be big !

Monday, April 10, 2006

Gold Dip and rebound

Last Friday Gold dropped $10 from record high $597 to $587.

When people start to worry about a big adjustment is coming, the price climbs back steadily during Asian market session, and to its highest point today at the US market session, spotting $598.

The uptrend of Gold can hardly be changed, as a bull run of Gold usually last for 15 years. The gold surge starts at 2000.(see gold history chart) So Im still optimistic to see Gold reaching $650 this year. Ultimate target is to reach the all time history record $850.

Thursday, April 06, 2006

Go Go Gold...

Gold managed to climb higher than $588, broken $590 after Asian market and staying at $594 after making a day high of $596.

Breaking $600 is basically no problem, next target $650, $700, still possible to push even further ? I have no idea, and it really depends on the big investers how much they want to earn.

General speaking, the demand for gold keep increasing especially from China and India, and the growth of inventory (+1.3% each year) is never enough to satisfy the supply. This supports the raise of Gold price.

Also, Gold price trend is often going in opposite side to USD. After the interest hike, USD is very likely to start bear, then another surge on Gold is very possible.

Monday, April 03, 2006

Gold becomes crazy

Gold refused to drop back after the surge last week, staying at the high position above $580.

After it has broken the top of last time $574. In theory the measured increase is at least $30, that means Gold could reach over $600 at the new wave this time.

All commodities are in the bull run, and related stocks are all in record high. Anyone still dare to buy in ?