Tuesday, August 5, 2008

4:50AM PDST

GOOD MORNING GOLD BUGS! TODAY'S REPORTS: Retail chain index ISM services FOMC (THIS IS THE ONE THEY'RE ALL WAITING FOR) 1:15PM EASTERN The markets ought to be fairly calm today while everyone waits to see what the FED will do to interest rates (nothing!) Gold has sold off all afternoon and over night like letting blood slowly... SIMPLY INSANE! Oil is now down to the 118s Bonds 115s Dow is at 1138 Dollar jacked up all the way to .7401 (as if it's REALLY worth that!)

2 comments:

Unknown said...

GT, how would interest rate decision impact the direction of gold? Can you give few scenarios?
Right now I have open positions almost at every 3 dollars starting from 927 :)

GOLDTRADER said...

kerimo...

Is it kerim now or kerimo?

I can't even guess anymore how the market WILL act!

What gold SHOULD DO, is go up
NO MATTER WHAT the FED does to interest rates...!

If they lower interest rates that INCREASES INFLATION!

If they raise interest rates, that
STOPS THE ECONOMY!

This is why screwing around with increasing the money supply to avoid NORMAL MARKET CORRECTIONS
ALWAYS leads to these problems...

It starts out slow, taking years (over 30, in this case) and at the end, like now, things move daily and the hourly.

Sinclair is saying this is the bottom for gold, and I agree, but after yesterday and last night, I am simply lost in an INSANE WORLD,
and just hanging on to my FUNDAMENTAL UNDERSTANDING of where gold HAS TO GO EVENTUALLY, AND SOON.

Hang in there, I'm in higher than you are at 931.50...ouch!

I sure wish I had my money available to put in here, but I have to make extra sure to prevent
margin calls...

This seasonal pattern has killed me THREE YEARS IN A ROW...
You think I'd learn, but I always think the world has to come to its senses and gold is going to take off, instead it flops massively and I get creamed!

That's why I have been forced to TAKE IT WHILE I GOT IT!

Which means being an in and out trader every day..
while holding a core position of CASH GOLD COINS for the long haul.