Thread: Gold prices to crash?

Since nobody offered any opinion on my question about gold prices or are keeping their counsel to themselves, I figured I'll stick my neck out some more. First of all, below is a 30-day gold chart. It shows strong upward movement to $980 levels and a gradual slide down along with oil prices. It seems poised to go lower still. In India, the dealers are hoping that the people will start buying below Rs. 12,000 before diwali and marriage season start. Will the demand push up prices again you think?

Date 08/05/08 time 4.58 pm

Hi Paresh,
All i can say at ths point of time is that it will be too premature to write off gold just as yet. But it remains critically posied and one ahs to be watching it with eyes wide open.

Well, Gold did go to $800, and since then has been slowly moving up. Of course, oil prices are also inching up along with it. Gold is again near $817, and oil is at $116.9 as I write this. DJ is down about 100 points.

Paresh

Yes folks, gold has fallen an awesome 7% last week. It blew out 200DMA support at $850 levels, then broke thru $800 and is right now hovering between $780-$800 key support area. But it is still nowhere close to 38% correction ($738) of its entire BULL correction from 1999-2001 lows. Once it breaks thru $780 conclusively, it could be headed to $730 levels. Can it be that a huge fund is liquidating its positions? Can it be that they are blowing out 'family assets' to pay their debt somewhere else? Whatever be the case, one thing is clear that right now, the corelation between gold and oil is also blown. Oil is at $113.77 at the time of writing this.

Silver on the other hand has already gone below its 50% retracement. An expert calls it once in a 5 - 10 year type of market! Definitely a massive blowout on the downside.