Gold Futures (December), 30-minute Chart
The gold futures are acting strong again. There were three nice spots to get long on an intraday basis over the
last three days, which you can see in the chart above. Dollar weakness doesn't completely explain the move of recent days,
but short-term traders don't look for reasons, they just
follow the trend.
Amex Gold Bugs Index, Daily Chart
The Gold Bugs Index has been on a wild tear
after breaking out in late July. Taking a longer view, it appears that the market is expecting the Fed's
pro-inflation policies will succeed brilliantly, and the dollar will continue to suffer. Pity the poor foreigners who hold dollar-denominated
Folks who hold some precious metal funds (like VGPMX, now closed to new investors
of course) are sure happy to have had that exposure these last several years.
Previous Entry >>> Goings On About London