Wednesday, April 7, 2010

KEEP YOUR FOCUS HERE update II

Nearing Joes breakout number on gold at 1150 ....so be on your toes ...this is danger zone.....Also its obvious that the VAT is coming so pay attention to that news...ooooboy
(Reuters)
Gold steady as strong dollar offsets diversification
Jan Harvey
LONDON
Wed Apr 7, 2010 7:30am EDTLONDON (Reuters) - Gold steadied in Europe on Wednesday, retreating after hitting a record high in euro terms, as the rising dollar offset buying linked to fear-driven diversification into hard assets like bullion.

Dealers reported good physical gold buying from major markets like India in recent sessions, which also supported prices. Other precious metals also rose, with palladium hitting a two-year high and platinum its strongest price in 20 months.

Spot gold was bid at $1,134.95 an ounce at 1109 GMT, against $1,133.20 late in New York on Tuesday. U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange eased 10 cents to $1,135.90 an ounce.

"Yesterday good demand from India for physical (gold) continued," said Afshin Nabavi, head of trading at MKS Finance.

"We are currently flirting with important resistance in dollar terms. Should we be able to take out the $1,145-1,150 area, we should be ready for a big move toward the $1,200 level."

Traders report Indian jewelers are stocking up as the wedding season begins in the world's largest gold consumer.

Jitters over the outlook for the euro zone also resurfaced amid uncertainty over a proposed Greek aid deal, following a media report that Greece wanted to renegotiate a joint EU-IMF aid deal reached last month.

The euro's resulting slide toward a one-week low versus the dollar would typically depress gold prices, but it has also led some investors out of the single currency and into gold.

"Gold still has to conquer resistance around $1,146 to confirm a break from its current broad trading range," said James Moore, an analyst at TheBullionDesk.com.

"However, increasing concerns over fiscal deficit levels continue to draw diversification toward hard assets, particularly gold."

Nonetheless, the stronger dollar did take some of the wind out of gold's sails, pulling prices off a high of $1,138.20 hit in earlier trade.

PLATINUM, PALLADIUM CLIMB

Euro-priced gold also came off the record high of 851.92 euros an ounce established earlier, and was later bid at 849.96 euros against 846.04 euros late on Tuesday.

Gold prices are also being supported by expectations interest rates will remain low for an extended period, which will keep the opportunity cost of holding gold low.

Minutes from the U.S. Federal Reserve's last meeting released on Tuesday suggested the bank could keep interest rates ultra-low for even longer than investors expect if the economic outlook worsens or inflation drops.

Among other commodities, platinum group metals also benefited from expectations for an economic recovery, with dealers reporting good demand for palladium in particular from Japanese carmakers.

Platinum and palladium are primarily used in catalytic convters, but both have also seen significant investment interest this year, especially since the launch of new exchange-traded products backed by these metals in New York.

Platinum hit its highest since August 2008 at $1,723 an ounce and was later at $1,712.50 an ounce against $1,697.50. Palladium hit a two-year high at $511.50 and was later at $508 against $504.50.

update I
http://www.reuters.com/article/idUSTRE6361B120100407

updateII
Watch this for pure entertainment......Ratigan better watch it or he's gonna get an offer he can't refuse...go Dylan.

http://www.zerohedge.com/article/dylan-ratigan-discusses-great-financial-con-job-alan-grayson-and-bill-fleckenstein

24 comments:

  1. Another good trader had 1135 as a possible top for Gold, and is looking for 1900 now, if it holds.
    Joe, red, analyze, you guys like ALC?

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  2. I guess I was right about the formation on JAG. The hard part for me is now to recognize when the move is all the way over, so as not to take too much off too soon.

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  3. anyone still in SWC.....wooohooo

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  4. MPG continues it's parabolic move, Jim did you get in yesterday?

    Joe

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  5. AUY looking like 11.26 on the way

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  6. I hope no one is playing that CNAM gap this morning.....you might have a heart attack......hehehehe

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  7. yes Joe got in MPG yesterday after you mentioned it and just took profit, I am still holding on to SWC which I bought at 10.
    Jim

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  8. God strike me dead for laughing at this headline:

    "Geithner to meet China's Wang on Thursday"

    Glad I picked up JAG last week when they beat it down.

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  9. Way to go Jim!

    Joe

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  10. kli,

    CNAM is not for the weak hearts,heheeeee!

    Joe

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  11. scalped my SOL. Tightened trailing stops on JAG and SLW. I have a couple of hours to trade before I head to the airport.

    CBS I have 11.40 as a short term target for JAG.

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  12. SOL is kicking ass, heheeeee!

    Joe

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  13. SOL is kicking butt!

    Joe

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  14. my stops were hit and rung the register on JAG and SLW. Lots of dry powder for Friday.

    GL

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  15. Thanks again for swc, joe. It's my biggest winner this year. - Nancy

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  16. nancy,

    Glad you are doing fine, you and Jim are doing great.

    Joe

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  17. Kli and Joe
    Gold is trading around 1153 right now. What will confirm a break out?
    Thanks for all the great info
    Tom

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  18. Tom,

    If you read my messages I mentioned 1150 is the resistance, if broken with authority then that confirms the break out, if Gold goes thru 1160 then not much resistance till 1200 and if 1200 broken nicely then you will see 1300 before yr end.

    Joe

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  19. All,

    This is the main reason for SOL's gain today:

    http://finance.yahoo.com/news/Chinese-Solar-Shares-Soar-on-indie-995133996.html?x=0&.v=1

    Joe

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  20. Yes, joe, you and kli and red have literally been my lifelines for well over a year now. I can only imagine how much alpo you have stashed now, you jackal! - N

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  21. Thanks Joe, I appreciate it.
    Tom

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  22. GDX appears to be in breakout with reverse HnS in place .....caution....but if you have your core you may want to be aggressive if this gets a heavy volume green close.

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  23. yup this is giving all kinds of signals ....wow look at that volume in the miners in a down market day......

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  24. have fun gotta visit my dentist....yeeeehahahah

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